Indian equity markets recovered sharply from early losses on Monday, with benchmark indices Sensex and Nifty rebounding strongly amid value buying in select sectors and improved global cues.
The BSE Sensex slipped over 427 points in early trade to hit the day’s low of 84,840.32, while the NSE Nifty fell more than 142 points to 25,904.75, tracking weak global markets, continued foreign institutional investor (FII) outflows and uncertainty surrounding an India–US trade agreement.
However, buying interest emerged as the session progressed, helping both indices pare losses by midday. By around 1:15 pm, the Sensex had recovered nearly 450 points from its intraday low to trade at 85,245.18, while the Nifty reclaimed the 26,000 mark to hover near 26,034.
Market participants attributed the rebound to a combination of attractive valuations after the initial fall, firm cues from US markets and renewed buying in FMCG stocks. Investors selectively accumulated shares in banking, consumer durables, IT and FMCG sectors, which had seen recent corrections.
Sentiment also improved after US stock futures traded higher, signalling a positive opening on Wall Street and offering support to domestic equities. Meanwhile, FMCG stocks staged a recovery after recent weakness, with counters such as Britannia Industries and Marico emerging as top gainers in the sector.
From a technical perspective, analysts cautioned against complacency. According to Anand James, Chief Market Strategist at Geojit Investments Limited, the Nifty ended near a declining trendline, indicating that while the broader uptrend may continue, resistance around 26,190 remains crucial. A slip below 25,970 could trigger profit booking, though a sharp collapse appears unlikely at this stage.
Overall, the market’s ability to rebound from intraday lows reflected underlying buying support, even as investors remained cautious amid global and domestic uncertainties.
Originally published on 24×7-news.com.
