Market up from red to green as Sensex, Nifty Recover from Early Losses, Crude Oil Dip Lifts Sentiment

Market Rebounds

After a shaky start, the Indian stock market staged a smart recovery today with both the Sensex and Nifty closing in positive territory. The turnaround was largely attributed to a welcome dip in crude oil prices and some strategic buying in key, heavyweight stocks.

Join the Whatsapp Channel to Get News updates in english

The day began with a whimper, reflecting subdued global cues. However, sentiment shifted significantly during the later part of the trading session. The BSE Sensex, after initially dropping, ultimately closed with marginal loss of just 13 points at 74,102. The broader NSE Nifty, showcasing greater resilience, managed a gain of 38 points, ending the day at 22,498. The session was marked by considerable volatility, with the Nifty finding support around the 22,300 level before bouncing back to approach the 22,500 mark.

A key factor fueling this recovery was the continued decline in crude oil prices. Concerns that US tariffs on Canada, Mexico, and China could hinder economic growth and, consequently, reduce energy demand, pushed prices lower for the second consecutive session. Brent crude futures dipped by 0.42% to $68.99 a barrel, while US West Texas Intermediate (WTI) crude fell by 0.55% to $65.67 a barrel. This drop in oil prices is generally viewed as a positive development for the Indian economy, as it helps reduce input costs for many sectors that rely heavily on oil.

Another factor contributing to the market's resilience was a slowdown in selling by foreign institutional investors (FIIs). While FIIs continued to offload shares, the pace of selling had decreased. On Monday, FIIs sold equities worth Rs 485.41 crore.