Sensex Rebounds 450 Points From Day’s Low; Nifty Reclaims 25,900 as Markets Trim Early Losses
Sensex rebounds 450 points from day’s low and Nifty climbs above 25,900 as crude prices drop, value buying emerges, and broader markets recover.
Sensex and Nifty recover from early losses as value buying and broader market rebound lift investor sentiment.
On Tuesday, the Indian stock market partially recouped its losses after an early sharp dip, backed by a rebound in market indices and value buying at lower levels. The Sensex and Nifty both lessened their losses considerably, although they were still in the negative zone during midday trading.
During the morning, the Sensex had already fallen to an intraday low of 84,382.96, and the Nifty fell to 25,749.30. However, buying interest caused both indices to come back, the Sensex recovering almost 450 points and the Nifty going up to 25,900.
By 12:20 p.m., the Sensex was down 244.07 points (0.29%) at 84,858.62, and the Nifty was lower by 48.85 points (0.19%) at 25,911.70.
Top Gainers and Losers
Among Nifty50 constituents, Titan Company, Shriram Finance, and ETERNAL led the gainers with up to 2% rise, while Asian Paints and Mahindra & Mahindra were among the top laggards, falling as much as 4%.
Three Key Reasons Behind the Market’s Recovery
1. Crude Oil Prices Decline
Brent crude, the global oil benchmark, slipped 0.21% to $62.36 per barrel, easing concerns about India’s fuel import bill and inflationary pressures.
Lower crude prices typically support domestic equities, contributing to improved market sentiment.
2. Value Buying After Sharp Opening Fall
The opening session saw broad-based selling, with all 16 major sectoral indices trading in the red.
The Sensex dropped 633.90 points (0.74%) to 84,468.79.
The Nifty fell 211.25 points (0.81%) to 25,749.30.
Investors took the opportunity to accumulate fundamentally strong stocks at discounted levels, helping benchmarks recover a large portion of the early losses.
3. Broader Markets Stage a Comeback
The broader indices, which faced deeper corrections recently, also trimmed losses:
Nifty Midcap100 fell to 58,545.40, down 4.5% from its record high of 61,311.25 (hit on December 1).
The Nifty Smallcap100 reached 14.87% down from the high point of 19,716 on December 12, 2024, recording a low mark at 16,782.55.
By noon, both indices bounced back into positive territory, providing additional strength to frontline indices.
