Sensex rises 350 pts from day’s low, Nifty near 25,700: 3 key reasons behind market rebound

Stock Market Today News: Sensex, Nifty see value buying in trade. 

• Sensex and Nifty rebound from early losses despite market volatility.
• Value buying in metal, oil and gas, and consumer durable stocks aided recovery.
• Asian markets' gains and expiry-related volatility influenced domestic indices.

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The equity benchmark indices Sensex and Nifty witnessed sharp volatility on Wednesday as investors remained cautious amid continued foreign fund outflows and global tariff-related concerns.

However, domestic markets pared most of their early losses on the back of value buying in select sectors and traded flat, at arouind 2:45 p.m.

The Sensex slipped to an early low of 83,185.20 but recovered nearly 350 points from the day’s low to trade at 83,505.56, down 122.12 points or 0.15 percent. The Nifty was also trading near the 25,700-mark at 25,692.30, down 40 points or 0.16 percent.

3 key factors behind market recovery

1) Value buying: Buying interest emerged in select metal, oil and gas and consumer durable stocks.

Both benchmarks have declined in six of the past seven sessions, with the Sensex down about 2.5 percent and the Nifty lower by around 2.3 percent, amid concerns over US tariff measures, geopolitical tensions and sustained foreign fund outflows.

Foreign portfolio investors have withdrawn about Rs 16,600 crore so far in January, after record selling of nearly Rs 1.58 lakh crore in 2025.

On Tuesday, the Sensex fell 250.48 points or 0.3 percent to close at 83,627.69, while the Nifty declined 57.95 points or 0.22 percent to 25,732.30.

2) Expiry-related volatility: The BSE equity derivatives contracts weekly expiry has been advanced to January 14 from January 15 due to the Maharashtra Municipal Corporation election scheduled for Thursday. Markets typically witness heightened volatility on expiry days.

3) Positive cues from Asian markets: Asian markets were trading in the green, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng index posting gains in early trade.

Technical view

Anand James, chief market strategist at Geojit Investments Ltd, said Nifty managed to arrest its fall near the 25,715–25,620 zone but failed to gather strong upside momentum.

He said a sustained move above 25,715 could open the way towards 26,020, while a break below 25,600 may expose the index to the 25,060 level.

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