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Market Mounts Dramatic Intraday Rebound
Indian equity markets demonstrated remarkable resilience on Monday, executing a significant intraday recovery that saw the benchmark Sensex vault nearly 800 points from its lowest point. Despite opening lower on subdued global cues, a wave of value buying, particularly in technology and large-cap banking stocks, halted a sharp slide. However, this strong rebound was not enough to lift the broader indices into positive territory by the close, with the Nifty 50 settling marginally down.
Tech Shares Drive Sectoral Rally
The Nifty IT index emerged as the strongest performer, surging 2.07%. Tech Mahindra led the charge with an impressive 4.85% gain, closely followed by Infosys, which added 2.38%. Wipro also posted gains, underscoring a broad-based uplift within the technology sector. This resurgence in IT shares provided key support, offsetting losses in other segments. Value buying was also evident in beaten-down largecaps such as ICICI Bank, HDFC Bank, and Kotak Bank, all of which finished the session higher.
PSU, Auto, Metal Stocks Face Pressure
Persistent pressure continued to weigh on public sector undertakings (PSUs), automotive, and metal stocks. Power Grid Corporation experienced a notable decline of 2.93%, while Tata Steel shed 3.15%. State Bank of India (SBI) also pulled down the market, falling 2.53%. Sector-specific indices like Nifty PSU Bank and Nifty Auto closed significantly lower, reflecting ongoing investor concerns in these areas following a rough six-session period where both Sensex and Nifty recorded substantial losses.
Geopolitical Fears and Oil Prices Add Pressure
Adding to market jitters, Brent Crude oil prices surged to an intraday high of $112 per barrel. This escalation came from heightened U.S.-Iran tensions, with President Trump issuing a stark warning to Tehran. Iran's response, including the formation of a new authority for the Strait of Hormuz, has heightened regional instability. Analysts caution that the combination of elevated crude prices, rising bond yields, and a weakening rupee is reinforcing inflationary concerns, creating a fragile economic balance.
Analyst View on Market Drivers
Vinod Nair, Head of Research at Geojit Investments Limited, noted the market's ability to recover intraday losses, crediting value buying in IT and banking. "The ongoing earnings season has provided a positive backdrop, but caution remains as higher bond yields, elevated crude oil prices, and a weakening rupee reinforce inflationary concerns," he stated. Immediate support for the Nifty is seen in the 23,300–23,400 zone, with resistance pegged around 23,900–24,000.