Sensex settles 350 pts higher from day's low, Nifty ends near 26,150: 3 key reasons behind market paring losses

Stock market today news: Sensex, Nifty see value buying. 

The equity benchmarks pared early losses with the Sensex recovering about 350 points from the day’s low and the Nifty holding near the 26,150 level on Wednesday, aided by bargain hunting and positive global cues, after the market fell for two straight sessions.

The Sensex slumped sharply in early trade to 84,617.49, but recouped ground to trade significantly off session lows, while the Nifty 50 index stayed near the 26,150 mark following the turnaround.

The benchmark equity indices Sensex and Nifty extended decline earlier in the day amid geopolitical tensions and sustained foreign fund outflows.

Titan, Jio Financial Services and Wipro were among the top gainers in the Nifty50 pack, rising up to 4 percent, while Cipla and Tata Motors Passenger Vehicles declined up to 4 percent.

Key factors that helped market pare losses

1) Crude oil and global sentiment: Oil prices slipped on January 7 after US President Donald Trump said Venezuela would hand over between 30 million and 50 million barrels of sanctioned crude to the United States. US West Texas Intermediate (WTI) crude fell 78 cents, or 1.37%, to $56.35 a barrel by 0200 GMT, while Brent crude declined 61 cents, or 1%, to $60.09 a barrel. Both benchmarks had dropped more than $1 in the previous session, as markets balanced expectations of abundant global supply in 2026 against uncertainty over Venezuelan oil production following the US capture of the country’s leader, Nicolas Maduro.

A softer trend in crude prices provided relief to investors, helping sentiment as oil-importing markets like India benefit from lower input costs.

2) Value buying: Bargain hunting was visible in key sectors such as information technology, pharmaceuticals and consumer durables. After two sessions of declines, investors stepped in at lower levels, supporting the rebound in major indices.

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3) Firm global cues: Positive cues from overseas markets, with most Asian bourses trading in the green and Wall Street finishing higher on Tuesday, led to buying interest on Dalal Street.

Technical view

"Near-term sentiment remains cautious and markets remain sensitive to trade and geopolitical developments, fluctuations in crude oil prices ahead of the results season starting next week," said Hitesh Tailor, research analyst at Choice Equity Broking.

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