Stock Markets Rebound After Monday's Crash: Sensex Jumps 1,089 pts Tracking Firm Global Trends

Mumbai: The stock markets experienced a remarkable rebound on Tuesday, recovering from their worst decline in 10 months. The benchmark Sensex surged by 1,089.18 points, or 1.49 per cent, closing at 74,227.08. At its peak during the day, it climbed as much as 1,721.49 points, marking a 2.35 per cent gain.

Similarly, the NSE Nifty rose 374.25 points, or 1.69 per cent, settling at 22,535.85. During the trading session, Nifty hit an intra-day high of 22,697.20, a 2.41 per cent increase. This sharp recovery followed Monday’s dramatic losses, where Sensex plummeted 2,226.79 points and Nifty fell 742.85 points.

Global Cues Drive the Market Rally

The recovery was fueled by positive trends in global markets. After a massive sell-off on Monday, Asian indices like Tokyo’s Nikkei 225, Hong Kong’s Hang Seng, Shanghai SSE Composite, and South Korea’s Kospi rebounded sharply. The Nikkei 225, in particular, surged 6 per cent.

European markets also posted gains, while the US markets closed mostly lower on Monday. The positive global sentiment, coupled with reduced fears over US trade tariffs, boosted investor confidence.

Sector-Wise Growth and Top Gainers

All Sensex sectors ended in the green, with the Oil & Gas index leading the charge, rising 2.58 per cent. Other strong performers included consumer durables (2.38 per cent), telecommunications (2.32 per cent), industrials (2.04 per cent), and energy (2.03 per cent).

Key gainers on the Sensex included Titan, Bajaj Finance, State Bank of India, Larsen & Toubro, Axis Bank, Bajaj Finserv, Asian Paints, and Zomato. Notably, Power Grid was the only Sensex stock to end in the red.

Market Statistics and Institutional Activity

The BSE small cap index jumped 2.18 per cent, and the midcap index rose 1.87 per cent. On the broader market front, 3,093 stocks advanced, 871 declined, and 119 remained unchanged.

Foreign Institutional Investors (FIIs) sold equities worth Rs 9,040.01 crore on Monday, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 12,122.45 crore, according to exchange data.

Global oil prices also saw a slight uptick, with Brent crude climbing 0.22 per cent to USD 64.35 per barrel.

Outlook

"Positive global cues aided massive recovery in local benchmarks, as concerns over US trade tariffs faded on hopes of bilateral agreements," said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

Vinod Nair, Head of Research at Geojit Investments Limited, echoed similar sentiments, highlighting that the recovery was driven by optimism over global trade dynamics and strong domestic consumption-led growth.