Indian stock markets witnessed a volatile start on Thursday. Early morning trade saw heavy selling pressure, dragging benchmark indices sharply lower. But as the session progressed, the mood shifted.
The BSE Sensex managed to rebound nearly 600 points from the day’s low, while the Nifty 50 climbed back above the 23,750 mark.
The recovery did not come out of nowhere. A mix of value buying, stock-specific support, and global developments helped the market trim a large portion of its early losses.
Here’s a closer look at how the day unfolded and what pushed the market higher.
Market Performance
The trading session began on a weak note as investors reacted to global concerns and energy market volatility.
Within the first few minutes of trading, the Sensex and Nifty slipped sharply, reflecting cautious sentiment across sectors.
Key Market Numbers
- Sensex intraday low: 75,871.18
- Fall at low: 992.53 points (1.29%)
- Nifty intraday low: 23,556.30
- Fall at low: 310.55 points (1.3%)
But the selling pressure slowly eased as the morning progressed.
Market Status Around 11 AM
- Sensex: 76,504.29
- Down 359.42 points (0.47%)
- Nifty: 23,745.65
- Down 121.20 points (0.51%)
This recovery meant the Sensex bounced nearly 600 points from its intraday low, while Nifty reclaimed the 23,700–23,750 zone.
Main News: Why Sensex and Nifty Recovered After Early Losses?
Several factors contributed to the market’s rebound during the session. While the opening sentiment was weak, a combination of developments helped limit the damage.
Below are the key reasons behind the recovery.
1. Relief in the Crude Oil Situation
One of the developments that eased market concerns involved the global energy supply route.
Reports suggested that Iran allowed tankers flying the Indian flag to pass through the Strait of Hormuz, according to sources cited by CNN-News18.
The Strait of Hormuz is one of the most critical oil shipping routes in the world.
Any disruption in this region can affect crude oil supply and increase energy costs globally.
However, the situation remained unclear. A source from Iran reportedly denied allowing Indian tankers to pass, according to Reuters.
Despite the conflicting reports, the development provided some relief to markets already worried about global energy supply pressures.
2. Value Buying After Wednesday’s Sharp Fall
Another key driver behind the market recovery was value buying.
After the sharp fall in the previous session, investors stepped in to pick up stocks at lower levels.
The previous day had seen significant declines:
- Sensex fall (Wednesday): 1,342.27 points (1.72%)
- Closing level: 76,863.71
- Nifty fall (Wednesday): 394.75 points (1.63%)
- Closing level: 23,866.85
Following such a steep decline, some investors used the dip as an opportunity to buy quality stocks.
3. Buying Support in Reliance Industries
The rebound also received support from index heavyweight Reliance Industries.
The stock gained more than 1% during the session, helping the benchmark indices recover some of their early losses.
Because Reliance carries a large weight in both Sensex and Nifty, even a modest rise in the stock can influence the overall market direction.
Its upward move played a role in stabilizing the broader indices.
4. IT Stocks Limit the Downside
Another factor that helped the market recover was the relatively stable performance of IT stocks.
Technology companies often benefit when the Indian rupee weakens, as a large portion of their revenue comes from overseas markets and is earned in US dollars.
During early trade:
- The Indian Rupee weakened by 31 paise
- It slipped to 92.32 against the US dollar
The decline in the rupee was influenced by multiple factors:
- Foreign fund outflows
- Higher crude oil prices
- A stronger US dollar
- Continuing tensions in West Asia
Because of this dynamic, IT stocks remained relatively stable and helped cap broader market losses.
5. Strong Buying in Electricity Stocks
Another pocket of strength in the market came from the power and electricity sector.
With concerns around possible gas shortages, electricity-related stocks saw increased investor interest.
Two stocks in particular stood out among the Nifty50 gainers:
Both stocks rose up to 4% during the session, helping provide positive momentum within the market.
Company Details
Reliance Industries
- The stock gained more than 1% during the session
- As a heavyweight in both benchmark indices, its rise supported the broader market recovery.
Coal India
- The stock emerged among the top gainers in the Nifty50
- It saw gains of up to 4%, driven by increased interest in electricity and energy stocks.
Power Grid Corporation of India
- Another strong performer in the electricity sector
- The stock also climbed up to 4% during the session
These gains helped offset weakness seen in other parts of the market.
Summary of the Article
Thursday’s trading session highlighted how quickly market sentiment can shift during the day.
The Sensex rebounded nearly 600 points from its intraday low, while the Nifty climbed back above 23,750, reducing a large portion of the morning losses.
Several factors contributed to this recovery:
- Developments related to oil tankers in the Strait of Hormuz
- Value buying after Wednesday’s steep fall
- Gains in Reliance Industries
- Stable performance from IT stocks amid a weaker rupee
- Strong buying in electricity stocks like Coal India and Power Grid
While early trade looked weak, these elements helped the market regain some balance and trim losses as the session moved forward.
Source: Moneycontrol
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