Sensex and Nifty Bounce Back from Early Losses

Equity markets staged a notable recovery on Friday as the Sensex gained nearly 324 points to 80,972.27 around midday, clawing back from an early loss of 299 points. The Nifty also regained the 24,800 level, rising to 24,823.70 after slipping to 24,759.55 in the opening trades.

The recovery was led by broad-based buying across metals, banking, and infrastructure stocks, reflecting a mix of domestic and global triggers that restored investor confidence.

Key Stocks Driving the Rebound

Several heavyweight stocks powered the rally:

• Tata Steel: +3%, top gainer on Nifty 50
• Hindalco Industries: +4%
• Kotak Mahindra Bank: +3.5%
• Axis Bank: +3%
• JSW Steel: +3%

Strong performances in these stocks helped lift broader market sentiment, particularly in capital-intensive and metal sectors.

Factors Behind the Market Reversal

Several elements contributed to the intraday recovery:

1. Metal Stocks Rally: Tata Steel and other metal counters surged after reports that the European Union plans to cut steel import quotas by half and impose a 50% duty on volumes above limits. While the impact on Tata Steel and SAIL is limited due to low export share, Tata Steel’s Netherlands operations, contributing around 25% of revenue, are expected to benefit. Gains in metals lifted the overall market mood.
2. Government Capital Spending Push: Finance Minister Nirmala Sitharaman reiterated plans to boost capital expenditure, supporting infrastructure and capital goods sectors. India’s economy grew at 7.8% in the April-June quarter, the fastest in five quarters, further fueling optimism for growth-linked stocks.
3. Crude Oil Decline: Brent crude prices fell to a 16-week low for the third consecutive session, easing concerns over import costs and inflation. Lower crude levels provided relief to domestic equities and supported recovery in energy-linked sectors.
4. Positive Global Cues: Asian markets were mixed, with Japan’s Nikkei and South Korea’s Kospi showing gains, while Hong Kong’s Hang Seng dipped. Wall Street closed at record highs on Thursday, with tech stocks rallying and expectations of U.S. rate cuts improving global risk appetite for Indian equities.
5. Value Buying: After an eight-day losing streak, investors turned to value buying, snapping up quality stocks at lower levels. This momentum helped both Sensex and Nifty rebound from intraday lows and maintain gains through mid-session.

Market Takeaways

Friday’s session highlighted the resilience of the Indian equity markets amid global volatility and domestic triggers. Metals and banking sectors played a pivotal role, while lower crude and fiscal support provided additional tailwinds. Trading activity and sector-specific gains underline the market’s focus on growth and recovery stories.