Sensex, Nifty rebound sharply as value buying and IT rally lift markets

Indian equity benchmarks staged a strong intraday recovery on Tuesday, erasing early losses to trade higher amid renewed value buying, gains in information technology stocks and easing crude oil prices.

After opening on a weak note, both the BSE Sensex and NSE Nifty rebounded sharply during the afternoon session. By 1.30 pm, the Sensex had climbed 481 points, or 0.65 per cent, to 74,748.41, while the Nifty advanced 130 points, or 0.56 per cent, to 23,512.60.

The recovery was broad-based, with nearly 1,935 stocks advancing against 1,802 declines on the NSE. From its intraday low, the Sensex rallied almost 1,000 points, while the Nifty reclaimed the crucial 23,500 mark. The Bank Nifty also recovered strongly, rising more than 1.1 per cent from its day's low to return to positive territory.

Moneycontrol reported that market participants attributed the turnaround largely to value buying at lower levels after the benchmarks remained under pressure in recent sessions. Investors selectively accumulated shares of heavyweight companies such as ICICI Bank, Reliance Industries and Bharti Airtel, which helped lift the broader market sentiment.

Technology stocks emerged as the biggest contributors to the recovery. The Nifty IT index climbed as much as 5 per cent during the session to touch a one-month high, extending its recent rally. The sector has now gained more than 8 per cent over the past three trading sessions.

Among the top performers, Tata Consultancy Services and Infosys led gains, with both stocks rising sharply. Broader optimism in the technology sector was supported by favourable global cues and positive commentary from brokerages.

Market experts pointed to encouraging earnings from software and cloud companies globally, including US-based Snowflake, which reinforced expectations of steady demand for technology services. Analysts also noted that recent concerns around project delays at certain Indian IT firms appeared to be company-specific rather than indicative of a broader slowdown in demand.

Investor confidence was further supported by a decline in market volatility. India VIX, often regarded as the market's fear gauge, fell around 3 per cent to near 16, indicating improving risk appetite among traders.

Meanwhile, easing crude oil prices also provided relief to domestic markets. Brent crude slipped about 1.6 per cent from recent highs as investors monitored developments surrounding ongoing discussions between the United States and Iran. Lower oil prices are generally viewed as positive for India, which relies heavily on crude imports.

Despite the rebound, analysts were quoted as advising staying cautious about the near-term outlook. According to market experts, the Nifty continues to face resistance in the 23,700-23,800 zone, while support remains around the 23,250 level. A decisive break below support could trigger further downside, although stabilising crude prices and easing geopolitical concerns may encourage additional buying at lower levels.

While technology stocks dominated the gains, select defensive counters came under pressure. Shares of NTPC, Power Grid Corporation of India and Cipla were among the notable laggards during the session.

The sharp recovery highlights investors' willingness to return to the market at attractive valuations, particularly in sectors where earnings prospects remain strong. However, analysts believe global developments, crude oil prices and geopolitical risks will continue to influence market direction in the coming sessions.