Sensex and Nifty recover after early losses amid global market optimism

India’s benchmark equity indices, the Sensex and the Nifty, recovered on Tuesday after opening lower, supported by gains in global markets and selective buying in key stocks.

The 30-share BSE Sensex initially fell by over 140 points in early trading, while the NSE Nifty slipped nearly 50 points. However, both indices soon reversed course, with the Sensex rising by more than 190 points and the Nifty gaining over 60 points in mid-session trade.

Among the major gainers on the Sensex were Eternal, Mahindra & Mahindra, Maruti, Tata Steel, InterGlobe Aviation and Bharti Airtel. In contrast, IT stocks led the losses, with Infosys, HCLTech, Tata Consultancy Services and Tech Mahindra trading in the red, along with State Bank of India.

The rebound in domestic markets mirrored a positive trend across Asia, where key indices in South Korea, Japan and Hong Kong traded higher, although China’s Shanghai Composite lagged behind. Wall Street had also ended on a strong note in the previous session, lending further support to investor sentiment.

Despite the recovery, concerns persist over global uncertainties, particularly ongoing geopolitical tensions, which continue to weigh on market outlook. Analysts noted that Monday’s sharp rally was largely driven by short-covering after recent declines and may not sustain in the face of continued volatility.

Foreign Institutional Investors (FIIs) remained significant sellers, offloading equities worth over Rs 9,300 crore in the previous session. In contrast, Domestic Institutional Investors (DIIs) provided support by purchasing shares worth more than Rs 12,500 crore.

Meanwhile, global oil prices surged, with Brent crude rising more than 2.5 per cent to trade above $102 per barrel, adding to inflationary concerns.

On Monday, Indian markets had closed strongly, with the Sensex gaining nearly 939 points and the Nifty rising over 250 points, setting the stage for Tuesday’s volatile but ultimately positive session.