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…
On Friday, September 25, Indian equity benchmarks, the BSE Sensex and NSE Nifty, showed a rebound, recovering some of the losses from Thursday's sharp sell-off. The Sensex rose by 315.20 points, or 0.43 percent, to close at 73,895.74, while the Nifty advanced by 77.40 points, or 0.34 percent, to settle at 23,140.50. The Nifty's constituents had a mixed performance with 34 advancing, 15 declining, and one remaining unchanged.
Several factors contributed to the market recovery. Value buying was a major support, with consumer durables and automobile shares attracting buyers, while select banking and technology stocks also strengthened. Axis Bank led the gainers among banks with a 2.82 percent increase, followed by Mahindra & Mahindra at 2.24 percent and Asian Paints at 1.93 percent.
Several sectors witnessed gains on Friday. The BSE Consumer Durables index rose by 1.14 percent, while the Auto sector gained 0.95 percent. Realty advanced by 0.65 percent, accompanied by Power and Industrials, which advanced by 0.53 percent each. However, the broader market remained mixed, with BSE SmallCap Select index edging up by 0.11 percent, and MidCap Select index declining by 0.62 percent.
The market's decline on Friday was influenced by various factors. Hospitals, telecommunications, oil and gas, and housing finance stocks continued to face pressure. Global crude oil prices provided some relief to investors, as Brent crude declined by 1.10 percent to $105.4 per barrel. Lower crude prices are generally favorable for India due to the country's high import dependency on energy resources. Softer crude prices can help ease concerns over inflation, current account, and corporate input costs.
Despite Friday's recovery, sentiment among investors remained cautious due to elevated global bond yields and persistent foreign institutional selling. On Thursday, Foreign Institutional Investors (FIIs) had sold Indian equities worth Rs 5,027.36 crore, according to exchange data. Global market cues were mixed, with Japan's Nikkei 225 closing higher and Hong Kong's Hang Seng declining. European markets traded higher, whereas US markets had finished mostly lower on Thursday.
However, despite Friday's rally, the weekly losses for both Sensex and Nifty were not erased. The Sensex declined by 399.22 points, or 0.53 percent, for the week, while the Nifty lost 205.90 points, or 0.88 percent. The Sensex had already slipped by 1,247.71 points and the Nifty by 383.70 points on Thursday alone, indicating that Friday's recovery only represented a partial recovery rather than a reversal of the week's weakness.
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