Sensex rises 250 pts from day's low, Nifty above 25,400: 3 key reasons behind market paring losses

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

• Sensex and Nifty trimmed losses after sharp early declines.
• Value buying in metal, pharma, and PSU banks aided recovery.
• FII inflows and flat Wall Street futures supported sentiment.

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The equity benchmark indices Sensex and Nifty trimmed losses from the day’s low in afternoon trade on Tuesday, aided by value buying in select heavyweights after a sharp early decline.

The Sensex had plunged 1,360 points or 1.63 percent to hit an intraday low of 81,934.73. The broader Nifty dropped 385 points or 1.5 percent to 25,327.60 during the session.

The initial sell-off was led by information technology shares amid concerns over AI-led disruption.

However, by 2:15 pm, the Sensex had trimmed some losses and was trading at 82,286.88, down 1,007.77 points or 1.21 percent, about 250 points higher from the day’s low. The Nifty was trading at 25,433.65, lower by 279.35 points or 1.09 percent, after moving above the 25,400 level.

Key reasons behind market paring losses

1) Value buying: The recovery was driven by value buying in metal, pharma and PSU bank stocks after the benchmarks slipped more than 1.5 percent earlier in the day.

2) FII buying: Foreign Institutional Investors (FIIs) bought equities worth Rs 3,483.70 crore on Monday. FII inflows are closely tracked by investors as sustained buying by overseas funds improves liquidity and supports market sentiment.

3) Wall Street trades flat: Wall Street futures were trading flat after US equities ended nearly 2 percent lower overnight. The decline in US markets followed remarks by Donald Trump cautioning countries against abandoning newly negotiated trade deals after the Supreme Court struck down emergency tariffs. He indicated that higher duties could be imposed under other trade laws.

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