The benchmark equity indices staged a recovery after declining mid-session on Wednesday, with the Sensex rebounding over 300 points from the day’s low and the Nifty reclaiming the 25,100 mark, supported by buying in IT, metal and consumer durable shares along with fresh foreign fund inflows.
After opening firm, the markets turned weak during mid-session but later regained momentum, extending gains for the fifth consecutive day.
At around 2 p.m., the Sensex rose 89.83 points or 0.11 percent to 82,016.58, while the Nifty advanced to 25,132.10, up 23.80 points or 0.095 percent.
Key factors behind market recovery
1) FII buying: Foreign Institutional Investors (FIIs) were net buyers on Tuesday, purchasing equities worth Rs 1,440.66 crore.
"The ongoing mild rally in the market has support from institutional investment. FIIs turning buyers yesterday is a positive development. But it is too early to say that this trend will sustain," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
2) IT shares lift sentiment: The Nifty IT index was among the top sectoral gainers, with buying seen in heavyweights such as TCS and Infosys. Investor optimism remained high ahead of TCS’s quarterly results on October 9, which will mark the start of the earnings season.
3) Global cues: Federal Reserve Governor Stephen Miran’s remarks at an event in New York also supported market sentiment. Miran said the current calm in the US bond market provides room for faster interest rate cuts, citing moderating inflation and changes in the economy. Expectations of lower US rates generally boost risk appetite and foreign capital flows into emerging markets like India.
4) Rupee rises: The rupee traded in a narrow range and inched up two paise to 88.75 against the US dollar in morning deals, tracking gains in domestic equities and likely IPO-related inflows. A stronger rupee tends to attract foreign investors and reduces import costs, which in turn supports market sentiment.
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