The Indian equity market benchmark indices Sensex and Nifty rebounded sharply in early trade on Tuesday, recovering from the severe losses sustained in the previous session. The recovery comes on the back of a significant rebound in Asian markets.
The 30-share BSE Sensex surged 1,092.68 points to 79,852.08, while the NSE Nifty jumped 327 points to 24,382.60 in early trading. All 30 Sensex constituents were trading in positive territory, with Tata Motors, Tech Mahindra, HCL Technologies, JSW Steel, and Infosys among the top gainers.
Asian markets also saw a notable recovery, with major indices in Seoul, Tokyo, Shanghai, and Hong Kong trading substantially higher. Japan’s benchmark stock index notably soared over 10 percent.
In contrast, US markets closed with significant losses on Monday, exacerbated by a wave of global sell-offs. Foreign Institutional Investors (FIIs) offloaded equities worth ₹10,073.75 crore, according to exchange data.
Global oil prices also saw an uptick, with Brent crude rising by 1.27 percent to USD 77.27 per barrel.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the volatility, stating, “When market valuations are elevated, unexpected news and events can trigger sharp market declines. The recent global market turmoil was driven by recession fears in the US, the unwinding of the Yen carry trade, and tensions in the Middle East.”
Despite the global market turbulence, Vijayakumar noted that the correction in India was relatively mild compared to other markets. Domestic Institutional Investors (DIIs) played a crucial role in stabilizing the market, buying ₹9,155 crore worth of equities while FIIs sold ₹10,073 crore in the cash market.
On Monday, the BSE Sensex had plummeted 2,222.55 points or 2.74 percent to close at 78,759.40, marking its worst single-day decline since June 4, 2024. During the session, it had tumbled 2,686.09 points or 3.31 percent to 78,295.86. The NSE Nifty also experienced a significant drop, falling 662.10 points or 2.68 percent to close at 24,055.60, with an intraday drop of 824 points or 3.33 percent to 23,893.70, reflecting its worst single-day fall since June 4, 2024.
As markets recover, investors will be closely monitoring global economic indicators and geopolitical developments for further direction.