Sensex rebounds 350 points from day’s low, Nifty hits fresh record high
image for illustrative purpose
Indian equity benchmarks staged a sharp recovery in Monday’s trade, shaking off early weakness to trade firmly in the green by mid-morning, supported by buying in heavyweight stocks, renewed foreign inflows and positive global cues.
At around 10:30 am, the 30-share BSE Sensex rebounded more than 350 points from its intraday low to touch 85,883.50. The index had earlier slipped as much as 245 points to 85,516.75. Meanwhile, the broader NSE Nifty climbed from the day’s low of 26,263.60 to scale a fresh all-time high of 26,373.20.
Market sentiment improved after 10:30 am, with strong buying interest seen across auto, FMCG, PSU banks, realty and select index heavyweights.
Key factors driving the market recovery
Bluechip buying: Shares of Reliance Industries gained over 1 percent to hit a fresh 52-week high of Rs 1,611.80. The rally in the country’s most valuable company lifted its market capitalisation closer to Rs 22 lakh crore and provided significant support to benchmark indices.
Return of FII buying: Foreign Institutional Investors turned net buyers on Friday, purchasing equities worth Rs 289.80 crore after an extended period of selling. The reversal in FII flows boosted overall investor confidence.
Supportive global cues: Asian markets were trading higher, with gains seen in South Korea’s Kospi, Japan’s Nikkei 225 and China’s Shanghai Composite. US equities also ended mostly higher on Friday, improving global risk sentiment.
In commodities, Brent crude edged lower by 0.08 percent to USD 60.70 per barrel. Softer oil prices are positive for India as they help contain inflation and reduce the import bill.
Adding to the positive undertone, the Reserve Bank of India is set to conduct a Rs 50,000 crore open market operation (OMO) purchase on January 5, as part of its planned Rs 2 lakh crore liquidity infusion programme. The move is aimed at ensuring sufficient liquidity in the banking system and supporting credit growth.
Disclaimer: The views and investment tips expressed by experts are their own and not those of this publication. Investors are advised to consult certified professionals before making investment decisions.
