Sensex settles 350 pts higher from day's low, Nifty ends above 25,750: 3 key reasons behind market rebound

Sensex, Nifty rise amid value buying. 

The equity benchmark indices staged a recovery from early losses on Monday, supported by value buying in select sectors and positive global cues.

The Sensex inched up by 39.78 points or 0.05 percent to settle at 83,978.49 as 14 of its constituents advanced and 16 declined. During the day, it hit a high of 84,127 and a low of 83,609.54. The Nifty eked out a marginal gain of 41.25 points or 0.16 percent to end at 25,763.35.

Shriram Finance, Mahindra & Mahindra, State Bank of India, Apollo Hospitals Enterprise and InterGlobe Aviation were among the top gainers, rising up to 5 percent.

Three reasons behind the recovery

1) Positive global cues: Asian markets traded firm, with South Korea’s Kospi, Shanghai’s SSE Composite Index and Hong Kong’s Hang Seng Index moving higher. US markets had ended on a positive note on Friday, lending support to investor sentiment.

2) Value buying: Buying interest was seen in select banking, realty and pharma stocks after recent declines, helping the indices recover from early weakness.

Stock Market LIVE Updates

3) GST collection data lifts mood: Investor sentiment also received a boost from GST collection figures. Gross Goods and Services Tax (GST) revenue in October stood at about Rs 1.96 lakh crore, a 4.6 percent increase year-on-year, though the slowest growth so far this fiscal.

The slower growth followed a reduction in GST rates. According to official data released on Saturday, gross GST mop-up in October 2025 was Rs 1.96 lakh crore, compared to Rs 1.87 lakh crore in the same month last year. In August and September this year, GST collections had grown 6.5 percent and 9.1 percent, respectively.

Analysts said the October figure reflected festive season sales and pent-up demand, as consumers delayed purchases ahead of the GST rate cut announced during Prime Minister Narendra Modi’s Independence Day speech.

EY India Tax Partner Saurabh Agarwal said GST collections showed muted momentum due to rate rationalisation and deferred spending but added that collections are likely to improve in the coming months with seasonal demand.

Technical outlook

Anand James, Chief Market Strategist at Geojit Financial Services, said Nifty’s inability to move past the 26,100 level in recent weeks had created conditions for a decline towards 25,400. However, he added that oscillators have eased, suggesting limited downside and scope for a near-term recovery from the 25,700 region.

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.