Sensex Jumps 315 Points, Here's What Helped Markets Recover After Thursday’s Sharp Sell-Off?

Mumbai: Indian equity benchmarks bounced back on Friday, September 25, as value buying in banking, automobile and consumer-facing stocks helped the market recover some of the losses suffered during Thursday’s steep sell-off.

The BSE Sensex gained 315.20 points, or 0.43 per cent, to close at 73,895.74. During the session, the index moved between 73,477.77 and 73,968.05, marking an intraday swing of about 490 points.

The NSE Nifty advanced 77.40 points, or 0.34 per cent, to settle at 23,140.50. Of the 50 Nifty constituents, 34 ended higher, 15 declined and one finished unchanged.

What Drove The Recovery?

Value buying after the recent market correction emerged as a major support. Consumer durables and automobile shares attracted buyers, while select banking and technology heavyweights also strengthened.

Axis Bank was the biggest Sensex gainer, climbing 2.82 per cent. Mahindra & Mahindra jumped 2.24 per cent, while Asian Paints gained 1.93 per cent.

Bajaj Finance rose 1.21 percent, HCL Tech advanced 1.17 per cent and Titan gained 1.01 per cent.

Trent was the biggest laggard, declining 1.41 per cent. Infosys, Kotak Mahindra Bank, ICICI Bank and Tata Steel also ended lower.

Which Sectors Gained?

The BSE Consumer Durables index climbed 1.14 per cent, while Auto gained 0.95 per cent. Realty rose 0.65 per cent, with Power and Industrials advancing 0.53 per cent each.

However, the broader market remained mixed. The BSE SmallCap Select index edged up 0.11 per cent, while the MidCap Select index declined 0.62 per cent.

Hospitals, telecommunications, oil and gas, and housing finance stocks remained under pressure.

Why Did Crude Oil Matter?

Global crude prices provided some relief to investors. Brent crude declined 1.10 per cent to $105.4 per barrel.

Softer crude is generally favourable for India because the country imports a large portion of its energy requirements. Lower prices can ease concerns over inflation, the current account and corporate input costs.

What Is Still Worrying Investors?

Despite Friday’s recovery, sentiment remains cautious amid elevated global bond yields and persistent foreign institutional selling.

FIIs sold Indian equities worth Rs 5,027.36 crore on Thursday, according to exchange data.

Global cues were mixed, with Japan’s Nikkei 225 closing higher and Hong Kong’s Hang Seng declining. European markets traded higher, while US markets had finished mostly lower on Thursday.

Did Friday’s Rally Erase Weekly Losses?

No. The rebound recovered only part of Thursday’s steep losses.

For the week, the Sensex declined 399.22 points, or 0.53 percent, while the Nifty lost 205.90 points, or 0.88 percent.

On Thursday alone, the Sensex had plunged 1,247.71 points and the Nifty had fallen 383.70 points, leaving Friday’s advance as a partial recovery rather than a reversal of the week’s weakness.