The key domestic equity indices bounced back sharply after a debacle in the first 15-20 minutes of trading. The Sensex, the 30-share index of BSE, soared 976 points to an early high of 73,491.97 from the day's low of 72,514.57. Earlier, the index fell 610 points from the previous close of 73,123.83. Analysts attributed Value buying, or bargain hunting, in select heavyweights after the recent decline as playing a key role in the recovery.
Meanwhile, Nifty50 recovered significantly from early losses to trade to a high of 22,706.15, up 318 points from the day's low of 22,387.35. On Friday, the index closed at 22,600.
What's behind stock market recovery
Ponmudi R, CEO of Enrich Money, said, "Indian equity benchmarks recovered from their intraday lows after a cautious opening, as fresh buying and short covering in select heavyweights supported a recovery across the pharmaceutical, metal, realty, private-sector banking and oil & gas sectors."
However, the analyst did not see the recovery as a structural one and warned of a cautious approach amid geopolitical tensions
"The rebound suggests some bargain hunting at lower levels, although the broader mood remains guarded amid persistent geopolitical uncertainty and elevated crude oil prices," Ponmudi noted.
Top Losers and Gainers
Top Winners: Adani Ports, Kotak Bank, Eternal, Indigo, Sun Pharma, BEL, Trent, Tata Steel and Reliance.
Top Losers: Infosys, Asian Paints, Hindustan Unilever, HCL Tech, ICICI Bank, Bajaj Finance, Maruti, Ultratech Cement, SBI, and Tech Mahindra