Sensex Surges 650 Points from Day’s Low, Nifty Crosses 25,500 as Markets Stage Strong Comeback

Sensex Rises 650 Points from Day’s Low, Nifty Above 25,500: Three Reasons Behind the Market’s Sharp Rebound

Indian equity markets staged an impressive comeback on Friday, recovering sharply from early losses as value buying in banking and financial stocks, coupled with positive global cues, revived investor sentiment. The rebound came after two consecutive sessions of weakness, with traders turning optimistic amid signs of stability in global equities and encouraging commentary from the U.S. on India ties.

At around 1:30 PM, the Sensex recovered nearly 650 points from the day’s low to trade at 83,336.06, up 25.05 points or 0.03%, while the Nifty 50 climbed above the 25,500 mark, quoting at 25,537.95. Earlier in the day, the Sensex had slipped 631.93 points to 82,679.08, and the Nifty had dropped 184.55 points to 25,325.15 before buyers stepped in.

Market Today: Key Gainers and Losers on Nifty 50

Among the Nifty 50 stocks, Shriram Finance, Adani Enterprises, and Bajaj Finance emerged as the top gainers, rising up to 3% on strong buying interest. These stocks benefited from renewed investor confidence in financial and infrastructure segments after recent declines.

On the flip side, Bharti Airtel and InterGlobe Aviation (IndiGo) were among the top laggards, slipping nearly 4%, as investors booked profits following their recent rally. Broader market indices showed a mixed trend, with the Nifty Midcap 100 and Nifty Smallcap 100 trading marginally higher, supported by selective buying in mid-tier financials and consumer stocks.

Also Read : ICICI Bank, AU Small Finance Lead Recovery as Bank Nifty Rebounds Over 1% from Day’s Low

Reason 1: Value Buying Drives Market Rebound

After two sessions of sharp declines, value buying emerged as the primary driver behind Friday’s market recovery. Traders and institutional investors took advantage of lower prices in quality stocks, particularly in the banking, financial services, and metals sectors.

Analysts noted that the Bank Nifty’s rebound and improved sentiment in PSU and private banks played a key role in stabilizing the indices. “The sharp fall earlier in the week made valuations attractive, prompting investors to re-enter quality names. Sectors like financials, metals, and autos are seeing renewed accumulation,” said a senior market strategist at a Mumbai-based brokerage.

Buying interest in large-cap lenders such as ICICI Bank, Kotak Mahindra Bank, and Punjab National Bank also contributed to the rebound, with the Bank Nifty climbing over 0.5% from the day’s low.

Reason 2: Trump’s Remarks on India Boost Sentiment

Investor mood also brightened after US President Donald Trump praised Prime Minister Narendra Modi, calling him “a great man” and “a friend,” while hinting at a possible visit to India next year to strengthen bilateral trade relations.

Market participants interpreted these comments as a sign of improving U.S.-India trade ties, which could lead to reduced tariffs and enhanced business cooperation. The remarks provided a psychological boost to equity markets, especially export-oriented sectors like IT and metals, which are sensitive to geopolitical developments.

“Trump’s positive tone towards India helped lift global investor sentiment. Any sign of improved U.S.-India trade relations tends to reflect positively on Indian equities,” said an analyst from a global investment firm.

Reason 3: Strong Global Cues Support Domestic Rebound

Another major factor behind the market’s sharp turnaround was the strength in global markets. Around noon India time, Wall Street futures traded higher, signaling a potential rebound in U.S. equities later in the day. Asian markets also displayed resilience, with indices in Hong Kong, Japan, and South Korea posting modest gains.

The improvement in global risk appetite, combined with a steady U.S. dollar and stable crude oil prices, provided relief to domestic investors who had been wary of international volatility earlier in the week.

“After a bout of risk aversion globally, markets are witnessing short-covering and renewed buying interest. The bounce in U.S. futures added to optimism across Asian equities, including India,” said a fund manager at a domestic asset management company.

Technical View: Nifty Holds Above 25,500, Support Seen Near 25,300

From a technical perspective, analysts believe the Nifty’s ability to reclaim the 25,500 level indicates near-term stability. The index now faces resistance around 25,650–25,700, while support is likely around 25,300.

“The recovery from day’s low suggests that bulls are defending key support levels. Sustaining above 25,500 could open the door for a move towards 25,700 in the short term,” said Rupak De, Senior Technical Analyst at LKP Securities.

The Sensex, too, is expected to consolidate between 82,800 and 83,700, with further strength emerging if global markets maintain their positive momentum.

Outlook: Market Cues Turn Constructive Amid Global Stability

While volatility may persist in the near term, analysts say the overall market sentiment has turned constructive, supported by improving global cues, value-based buying, and optimism around international relations.

With the festive season boosting domestic demand and corporate earnings largely meeting expectations, experts believe Indian equities remain on a long-term uptrend, even as short-term profit booking continues.

“Investors should view dips as buying opportunities in quality large-caps, particularly in banking, infrastructure, and consumption sectors,” said a senior analyst at Kotak Institutional Equities.

• Nifty 50
• Bank Nifty
• Sensex