Indian Markets Rebound as US Yields Ease, Sensex Jumps 650 Points

Indian equity markets rebounded sharply on Thursday, August 20, 2026, snapping a weeklong losing streak for the benchmark Nifty 50 and a four-session decline for the Sensex. The recovery was driven by a combination of falling US bond yields, short-covering by investors, and positive cues from global markets.

The 30-share BSE Sensex jumped over 650 points in early trade to trade around 77,566, while the 50-share NSE Nifty 50 gained more than 160 points to rise to approximately 24,239. The broader markets also participated in the rally, with the Nifty Midcap 100 and Nifty Smallcap 100 indices each rebounding nearly 1%. Market breadth was strongly positive, with nearly 2,000 stocks advancing on the National Stock Exchange against just over 500 declines.

The primary catalyst for the turnaround was a decline in US Treasury yields. The US Treasury announced plans to more than double the size of its buyback operations for long-duration debt, a move aimed at taming rising yields. This announcement pulled the benchmark 10-year Treasury yield down to around 4.64%. The easing of US bond yields improved global risk sentiment, providing a constructive backdrop for equity markets worldwide.