Sensex Recovers 700 Points From Day’s Low, Crude Oil Drop Brings Relief To Markets

Mumbai: The Indian stock market showed a small recovery on Monday after a sharp fall earlier in the day. The benchmark Sensex bounced nearly 700 points from its day’s lowest level as some relief came from falling crude oil prices.

Despite the recovery, the market remained under pressure and continued to trade lower during the session. Investors remained cautious due to global uncertainties and rising geopolitical tensions.

Sensex, Nifty Continue To Trade In The Red

Around 12:25 pm, the Sensex was trading more than 1,900 points lower at around 77,018. Meanwhile, the Nifty index dropped 603 points and was trading near the 23,847 level.

Market breadth remained weak, showing that selling pressure was widespread across sectors. About 636 stocks were trading higher, while nearly 3,179 stocks were trading in the red.

This indicated that even though the market recovered slightly from its lowest level, overall sentiment remained negative.

Fall In Crude Oil Prices Supports Market

The partial recovery in the stock market was mainly supported by a sudden fall in global crude oil prices. According to reports, US crude oil prices dropped sharply by nearly USD 15 per barrel in less than two hours on March 9.

After the fall, crude oil prices slipped below USD 104 per barrel, giving some relief to global financial markets.

The decline came after reports that G7 countries were discussing the possibility of releasing around 400 million barrels of crude oil from strategic reserves. Such a move could increase global supply and help stabilise oil prices.

IT Sector Offers Some Support

The information technology sector also helped limit the market’s losses. The Nifty IT index saw only a small decline of around 0.4 per cent during the trading session.

Compared with other sectors that witnessed sharper losses, IT stocks performed relatively better and provided some support to the broader market.

Key Technical Level For Markets

From a technical perspective, market experts believe that a key level for the Nifty is around 23,535. If the index falls below this level, the market could witness further sharp declines.

For now, investors are closely watching global developments, especially crude oil prices and geopolitical tensions, which may continue to influence market movements.