Indian equity benchmarks pared early losses on Tuesday, with the Sensex recovering nearly 350 points from the day’s low and the Nifty stabilising around the 26,150 mark. The rebound came amid selective buying after a weak start to the session.
Here are the three key factors behind the market’s intraday recovery:
1. Bargain Hunting in IT, Pharma and Consumer Durables
Investors stepped in to buy beaten-down stocks in IT, pharma and consumer durable sectors, which had seen pressure in recent sessions. Large-cap names in these spaces attracted value buying, helping indices claw back losses.
2. Stability in Global Cues and Crude Prices
Despite geopolitical concerns, global markets remained largely stable, and crude oil prices showed limited volatility. This eased fears of immediate macro disruption, particularly for India’s inflation and fiscal outlook, encouraging traders to reduce bearish bets.
3. Short-covering Ahead of Key Triggers
With upcoming macro data releases, earnings updates and policy-related developments, traders chose to square off short positions. This short-covering, especially in frontline stocks, added momentum to the rebound from intraday lows.
Market Snapshot
- Sensex: Off day’s low by ~350 points
- Nifty: Hovering near 26,150
- Gainers: IT, pharma, consumer durables
- Laggards: Select auto and telecom stocks
Overall, while sentiment remains cautious, the intraday recovery suggests buyers are willing to defend key support levels, even as markets await clearer cues on earnings growth, global policy direction and geopolitical risks.
