Sensex rises 300 pts from day's low, Nifty reclaims 25,100: 3 key reasons behind market recovery

Sensex rises from 300 pts from day's low, Nifty reclaims 25,100: 3 key reasons behind market recovery

Benchmark index Sensex rose 300 points from day's low and Nifty reclaimed the 25,100 level on September 24 as broad-based buying was witnessed in the afternoon trade.

At 1:30 pm on September 24, Sensex was down 176.88 points or 0.22% at 81,925.22, and the Nifty was down 38.25 points or 0.15% at 25,131.25. About 1,549 shares advanced, 2,130 shares declined, and 128 shares unchanged. The intraday low of Sensex was 81,607 and that of Nifty was 25,027.

Here are three reasons behind market recovery

Markets recovered significantly from day's lows amid broad-based buying in the afternoon trade as FMCG shares swung back into green after trading in red earlier in the day. Nifty IT also was at day's high after tumbling further in morning as US aims to rework H-1B visa selection process to favour higher-skilled and better-paid workers, following White House's earlier proclamation imposing $100,000 fees for new H-1B applications.

However, the indices are on course for a red closing for the fourth consecutive session.

2) Positive global cues

What also aided the recovery sentiment in the Indian equities are the positive global cues.

Stocks in Asia rebounded on Wednesday, shaking off earlier Wall Street-led losses as renewed enthusiasm for artificial intelligence and semiconductors breathed fresh life into China's tech-led rally.

MSCI's broadest index of Asia-Pacific shares outside Japan reversing an earlier decline of as much as 0.5% earlier in the session to be up 0.1% by mid-afternoon trading.

Chinese stocks led the charge, with a gauge of Hong Kong-listed companies up 1.5% and the STAR 50 Index rising 3.6%. Alibaba's Hong Kong-listed shares surged as much as 7.8% after the e-commerce giant announced on Wednesday its largest ever AI model, the Qwen3-Max.

Wall Street Futures were also trading in green with Nasdaq Futures up 0.3% and Dow Jones and S&P 500 Futures up 0.2% each.

3) HSBC's 'Overweight' call

Global investment bank HSBC on September 24 upgraded Indian equities to "overweight" from "neutral", and said the shares are looking attractive on a regional basis after recent underperformance.

HSBC said it expects Sensex to hit 94,000 by end of 2026, a 15% upside from current levels and has kept 2025-end target at 85,130.

The upgrade comes eight months after it had downgraded Indian equities in January citing slowdown in growth amidst high valuations, which limited the upside potential.

HSBC said US tariffs will have little impact on the profits of most listed companies.