Global Cues Trigger Sell-off
The session opened weakly as selling pressure intensified following comments from US President Donald Trump regarding tensions in West Asia. These remarks dimmed hopes for a quick resolution, affecting global markets and then Indian stocks. By midday, the Sensex had fallen over 1,500 points and the Nifty dropped more than 2% from its peak, wiping out most of the previous day's gains and creating caution among investors.
Value Buyers Emerge at Lower Levels
As stock prices dropped sharply, buyers stepped in, seeing value at the lower levels. Investors began acquiring shares that had experienced significant intraday falls, offering vital support that helped both indices recover from their lowest points by the end of trading.
Technology Sector Leads Rebound
The technology sector was a key driver of the market's rebound. The Nifty IT index climbed over 2%, finishing the day in positive territory. Several IT companies, such as Coforge, L&T Technology Services, HCLTech, and Mphasis, saw significant gains. Other major IT firms like Tech Mahindra, TCS, Wipro, and Infosys also traded higher, boosting the overall market sentiment.
Rupee Strength Bolsters Sentiment
The Indian rupee's significant gain also bolstered market sentiment. The currency strengthened sharply during the session after authorities took steps to curb speculative trading, providing further support for domestic stocks.