Sensex and Nifty Trim Losses, Nifty Climbs Above 25,400: Key Market Moves Explained | Stock Market Today

The equity markets staged a partial recovery after an early sharp decline on Tuesday, as investors returned to buy select heavyweights. Both Sensex and Nifty pared intraday losses, reflecting cautious optimism despite a volatile start.

Market Performance Snapshot

• Sensex fell to an intraday low of 81,934.73, down 1,360 points or 1.63%. By early afternoon, it recovered to 82,286.88, still down 1,007.77 points or 1.21%, marking a gain of around 250 points from the day’s low.
• Nifty 50 dropped to 25,327.60 at the low, down 385 points or 1.5%, before bouncing back to 25,433.65, down 279.35 points or 1.09%, climbing above the 25,400 mark.

The market’s swing highlighted a shift from panic selling to targeted buying, as investors focused on value opportunities across sectors.

Main Drivers Behind the Recovery

Despite early pressure, three main factors helped the markets recover:

1. Value Buying in Key Sectors

After the sharp decline, buying interest emerged in:

• • Metal stocks
  • Pharmaceuticals
  • PSU banks

This selective buying cushioned the benchmarks and limited losses, showing investor preference for defensive and value-driven plays.

2. Foreign Institutional Investors (FII) Activity

On Monday, FIIs bought equities worth Rs 3,483.70 crore, injecting liquidity and supporting market stability. Such inflows are closely watched, as sustained FII participation often signals confidence in Indian markets.

3. Global Market Sentiment:

Wall Street futures traded flat, following a nearly 2% decline in US equities overnight. The dip was triggered by statements from Donald Trump, cautioning countries against abandoning new trade agreements after the US Supreme Court struck down emergency tariffs. He suggested that alternative trade duties could be applied, adding cautious sentiment to global markets.

Sector and Stock Highlights

• IT Stocks led the early-day weakness, weighed down by concerns over potential AI-led disruptions.
• Recovery came primarily through value segments:
  • Metals: Investors capitalized on attractive valuations.
  • Pharma: Defensive buying provided a cushion.
  • PSU Banks: Seen as stable amid market volatility.

The swing demonstrates how market participants balanced risk, moving from high-growth but sensitive sectors into more stable and undervalued areas.

Summary

Tuesday’s market action shows the resilience of Sensex and Nifty, even amid sharp intraday declines. Key takeaways:

• Intraday lows were steep: Sensex down 1,360 points; Nifty down 385 points.
• Recovery driven by value buying and strategic FII participation.
• Global cues kept trading cautious, with Wall Street futures holding steady.

Investors watched for both domestic and international signals, reacting to short-term volatility while focusing on defensive and value-oriented opportunities.

Source: Moneycontrol