Mid-day mood: Sensex recovers from day’s low, Nifty climbs above 23,900; banking stocks drive rebound

Despite the rebound in Sensex and Nifty, analysts highlighted ongoing concerns that could keep markets range-bound.

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26 Aug, 2025 12:21

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The Indian share market bounced back from a subdued start on Monday, 30 December, with benchmark indices recovering in noon trade and BSE Sensex climbing as much as 700 points from the day’s low. In the noon trade, the BSE Sensex was up 356 points or 0.5 percent at 79,055, while the NSE Nifty rose 85 points to just above 23,900.

The recovery was primarily driven by strong gains in banking stocks, with the Nifty Bank index rising over 1.1 percent. However, auto and IT sector indices remained laggards, slipping 0.37 percent and 0.18 percent, respectively. Other sectoral indices were largely muted, trading near flat, with marginal gains in FMCG, energy, and infrastructure stocks.

Persistent concerns

Despite the rebound, analysts highlighted ongoing concerns that could keep markets range-bound. "Sustained foreign institutional investor outflows, diminishing expectations of U.S. rate cuts in 2025, and the lack of significant domestic triggers amid the year-end continue to weigh on sentiment," said Mandar Bhojane, research analyst at Choice Broking.

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Bhojane added that investors are likely to remain cautious ahead of key data releases, such as monthly auto sales and December quarter earnings, which could provide direction to the markets.

Among individual stocks, Adani Enterprises emerged as the top gainer on the Nifty, rising 5.67 percent to Rs 2,546.65. Other notable gainers included Shriram Finance, up 1.88 percent, and IndusInd Bank, which advanced 1.68 percent. Axis Bank, Cipla, and ICICI Bank also added over 1 percent each. On the flip side, Wipro led the laggards, slipping 1.49 percent to Rs 304.50, followed by Hero Motocorp, Dr Reddy’s Labs, and Trent, which declined between 0.9 percent and 1.15 percent.

Global cues and rupee concerns

Indian markets are also navigating global headwinds, with key Asian indices trading lower on Monday after U.S. equities fell sharply on Friday. The S&P 500 and Nasdaq 100 both dropped over 1 percent as investors trimmed positions amid uncertainties over the international trade landscape for 2025.

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Adding to the pressure is the continued weakness of the rupee, which recently breached the 85-per-dollar mark and is nearing the 86 level. The depreciation is making Indian equities less attractive to foreign investors, who face reduced returns in dollar terms. The Nifty Dollar Total Return Index has gained only 8 percent in 2024, trailing the 10 percent gains in rupee terms for the Nifty index.

Technical outlook

From a technical perspective, analysts note that consolidation could persist unless there is a decisive breakout from the current trading range. "The downside support remains around 23,600–23,500, aligning with last Friday’s low. A breach below this range could reignite the downtrend," said Sameet Chawan, Head of Technical and Derivative Research at Angel One. Resistance levels, meanwhile, are seen at 23,900 and the psychological mark of 24,000.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.