- Indian markets recovered sharply after early losses, with Sensex rising over 600 points from the low
- Nifty 50 held the crucial 22,600 level, rebounding from an earlier drop of 212 points
- Broader markets outperformed, with Smallcap and Midcap indices posting gains by late morning
The Indian markets logged a sharp recovery on Monday after early losses, with Sensex rebounding over 600 points from the day's low and Nifty 50 holding the crucial level of 22,600.
At 11:24 am, the Nifty was at 22,600.40, up 0.40 points (+0.0018%) from Friday's close of 22,600. The index had fallen as low as 22,387.35 earlier in the session, down 212.65 points (0.94%). It has since recovered 213.05 points, or 0.95%, from that low.
The Sensex was at 73,125.90, up 2.07 points (+0.0028%). It hit a day's low of 72,514.57, down 609.26 points (0.83%) from Friday's close. It has since recovered 611.33 points, or 0.84%.
Broader markets outperformed the benchmarks. As of 11:28 am, the Nifty Smallcap 100 was at 17,803.15, up 63.70 points (0.36%), and the Nifty Midcap 100 was at 55,897.90, up 97.25 points (0.17%).
Here's a look at the three reasons markets why recovered.
1. Bargain hunting in heavyweights
Analysts attributed the rebound to bargain hunting in select heavyweights after the recent decline. Buyers stepped in after Friday's session, when the Nifty fell 0.39% and every sectoral index ended lower. Pharma and metal stocks led the buying, with Dr Reddy's Laboratories rising 4.25% to Rs 1,281.80 and JSW Steel gaining 2.61% to Rs 1,216.50, while Hindalco added 1.33% to Rs 881.40. Among heavyweights, Kotak Mahindra Bank climbed 1.97% to Rs 439.
2. Crude oil eased from a five-month high
Brent crude was down about 2% at $114.30 a barrel by mid-morning. Hopes of de-escalation grew after Qatari mediators visited Tehran on Sunday, and traders took profits after Brent's roughly 6% gain last week. Lower crude prices help India, which imports most of its oil.
3. Institutional buying
Both foreign and domestic institutions were net buyers on Friday. FIIs bought a net Rs 887.65 crore of Indian shares. Provisional data also shows DIIs bought a net Rs 3,235.36 crore, for a combined Rs 4,123 crore.
Notably, analysts see the bounce as tactical rather than structural, and say geopolitical risk and high crude prices keep sentiment guarded. They flag 22,372 as key support for the Nifty and 22,850 as near-term resistance.
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