The equity benchmarks recovered part of their early losses on Tuesday as value buying emerged after a sharp fall at the opening. The Sensex recovered about 450 points from the day’s low of 84,382.96, while the Nifty moved above the 25,900 mark, though both indices were still trading in negative territory.
At around 12:20 p.m., the Sensex was down 244.07 points or 0.29 percent to 84,858.62, while the broader Nifty was at 25,911.70, down 48.85 points or 0.19 percent.
Titan Company, Shriram Finance and ETERNAL were among the top gainers in the Nifty50 pack, rising up to 2 percent, while Asian Paints and Mahindra & Mahindra were among the major laggards, declining up to 4 percent.
Key reasons behind market trimming losses
1) Crude declines: Brent crude, the global oil benchmark, slipped 0.21 percent to USD 62.36 per barrel. Lower crude prices tend to ease concerns over India’s import bill and inflation, which in turn supports sentiment in domestic equities.
2) Value buying at lower levels: In early trade, the Sensex had dropped 633.90 points or 0.74 percent to 84,468.79, while the Nifty fell 211.25 points or 0.81 percent to 25,749.30. All 16 major sectoral indices were in the red. However, bargain-hunting at lower levels helped the benchmarks trim losses as investors looked to accumulate select stocks after the steep initial decline.
3) Broader markets cut losses: The Nifty Midcap100 had plunged to 58,545.40 — down 2,765.85 points or 4.5 percent from its all-time high of 61,311.25 touched on December 1. The Nifty Smallcap100 fell to 16,782.55, a drop of 2,933.45 points or 14.87 percent from its December 12, 2024 peak of 19,716. By noon, both indices had pared losses and were trading in the green, offering additional support to overall market sentiment and aiding the recovery in the frontline indices.
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