Sensex Rebounds 200 Points, Nifty Reclaims 22,600 As Value Buying Lifts Markets

Indian benchmark indices Sensex and Nifty recovered from sharp early losses on Monday as investors bought beaten-down stocks following last week’s selloff, while a modest easing in crude oil prices provided some support.

At around 10 am, the Sensex was trading 203.69 points, or 0.28%, higher at 73,327.52. The Nifty rose 35.65 points, or 0.16%, to 22,635.65.

The recovery followed a weak opening, with sentiment remaining subdued amid elevated crude oil prices, concerns over their impact on inflation and uncertainty ahead of the US Federal Reserve’s policy decision later this week.

Value Buying Supports Market Recovery

Investors stepped in to buy stocks that had fallen sharply during last week’s correction, helping the benchmark indices recover from their morning lows.

However, the broader market remained under pressure at the open. Thirteen of the 16 major sectors recorded losses, while the small-cap and mid-cap indices fell 0.3% and 0.6%, respectively.

Information technology stocks led the early declines, with the sector falling 2.3%. Infosys dropped 3.4% after cutting its annual revenue growth forecast, as weakness in its key North American market outweighed better-than-expected revenue.

Crude Oil Eases, But Supply Concerns Remain

Brent crude futures traded around $114.5 a barrel, easing from a near six-month high of $117 reached after the Indian market closed on Friday. Brent had settled above $116 a barrel on Friday.

Despite the decline, oil prices remained elevated amid supply concerns following Houthi attacks on Saudi Arabia. High crude prices are a concern for India because the country relies heavily on imported oil, exposing its economy to inflationary pressures and a higher import bill.

Foreign institutional investors (FIIs) bought equities worth ₹887.65 crore on Friday, according to exchange data, offering another factor supporting sentiment.

Crude Prices, Valuations Remain Key Risks

“Despite the slight cooling in Brent crude price to below $115, the price continues to be too high and, therefore, will constrain any rally from the low level of 22,600 which Nifty touched last Friday,” said V K Vijayakumar, Chief Investment Strategist, Geojit Investments.

He advised investors to focus on value opportunities emerging from the correction rather than near-term index levels, while remaining cautious about the broader economic impact of elevated crude prices.

Vijayakumar said the sharp correction in mid-cap and small-cap stocks last week, particularly on Friday, reflected a reversion from stretched valuations and forced liquidation of margin-funded trades. While the broader market remained overvalued, he said the correction could create opportunities in high-growth segments.

“The weakening of the AI trade is positive for India,” Vijayakumar said, adding that foreign portfolio investor outflows from South Korea and Taiwan in September and October so far had exceeded capital outflows from India.

Market direction is likely to remain sensitive to crude oil movements, global developments and the US Federal Reserve’s policy decision later this week.