Nifty, Sensex Rebound from Day’s Lows as Financial Stocks Lead Market Recovery

Nifty, Sensex Rebound from Day’s Lows as Financials and Metals Lead Market Recovery

Financials Propel Market Recovery as Nifty, Sensex Rebound from Day’s Lows

In a volatile session on Friday, the Indian stock market witnessed a remarkable intraday recovery as Nifty and Sensex rebounded sharply from early losses. Bargain buying in financials, metals, and auto stocks helped offset weakness in FMCG, IT, and consumer durable sectors.

The Nifty 50 closed marginally lower at 25,492.30, down 17.40 points or 0.07%, while the BSE Sensex ended at 83,216.28, down 94.73 points or 0.11%. The Bank Nifty index gained 0.56% to 57,876.80, led by strong performance in private lenders and NBFCs.

According to market experts, the recovery was triggered by value buying near the 50-day exponential moving average (EMA) around 25,300 levels — a crucial technical support zone for the Nifty.

Also Read : India Sees $850 Million Inflows into Gold ETFs in October, Second Highest in Asia

Nifty Finds Support Near 25,300 as Traders Buy the Dip

The session started on a weak note, with both benchmarks opening gap-down following subdued global cues. The Nifty 50 slipped below the 25,400 mark in early trade but later recouped over 200 points amid strong institutional buying.

Market breadth on the BSE was balanced, with 2,069 stocks advancing and 2,105 declining out of the 4,315 traded. As many as 132 stocks touched fresh 52-week highs, while 209 hit new 52-week lows, signaling heightened intraday volatility.

Analysts attributed the rebound to short covering and renewed optimism in financials, following speculation about a possible FDI cap hike in PSU banks, which lifted the Nifty PSU Bank Index by 0.9%.

Bank Nifty and Financial Services Lead the Market Turnaround

Financial stocks emerged as the biggest contributors to Friday’s rebound. The Nifty Financial Services index climbed 0.76%, supported by solid buying in Bajaj Finance, Shriram Finance, and Bajaj Finserv.

“Domestic equities rebounded from early losses as buying emerged at key support levels, though it may be premature to call this a trend reversal amid mixed earnings and cautious global cues,” said a senior analyst at a leading brokerage.

The Bank Nifty also maintained its strength throughout the session, indicating that financials remain the backbone of market stability amid foreign selling pressure.

Sensex Closes Flat; Broader Market Reflects Volatility

Despite recovering from deep intraday lows, the Sensex ended in the red, down 0.11%, as profit-taking capped gains in late trade. Analysts noted that the flat closing was largely due to continued FII outflows and weak cues from U.S. technology and AI stocks, which dampened risk appetite across global markets.

“On the daily chart, Nifty formed a high-wave candle with long wicks on both ends, indicating heightened intraday volatility,” said a market technician.

Top Gainers and Losers: Financials and Metals Shine

Among the top gainers, Shriram Finance (+3.81%), Bajaj Finance (+2.66%), Adani Enterprises (+2.61%), Tata Steel (+2.39%), and Bajaj Finserv (+2.27%) led the charge.

On the other hand, Bharti Airtel (-4.46%), Tata Consumer (-1.97%), Tech Mahindra (-1.87%), Apollo Hospitals (-1.80%), and InterGlobe Aviation (-1.55%) were the major laggards, pulling the indices off their highs.

The metal sector was a standout performer, gaining 1.41%, supported by strong demand outlook and firm commodity prices.

Sectoral Performance: Financials, Metals, and Auto Outperform

Sector-wise, the Nifty Metal index rose 1.41%, followed by Financial Services (+0.76%) and Auto (+0.57%). These sectors benefited from value buying and renewed investor optimism around India’s growth momentum.

Conversely, Consumer Durables (-0.72%), IT (-0.62%), FMCG (-0.49%), Pharma (-0.36%), and Media (-0.26%) witnessed mild declines amid profit-taking and global headwinds.

Daily Market Action: Market Breadth Balanced Amid High Volatility

Market experts noted that the advance-decline ratio suggests a neutral undertone, highlighting investor caution despite selective buying.

Rupee, Gold, and Global Market Cues Influence Sentiment

The Indian rupee traded in a volatile range between 88.40 and 88.75, pressured by ongoing foreign institutional investor (FII) selling. According to Jateen Trivedi, VP Research Analyst at LKP Securities, the rupee may continue to fluctuate between 88.25 and 88.90 in the near term.

Meanwhile, gold prices held steady near ₹1,21,111 per 10 grams, supported by a weaker U.S. dollar and steady demand. “In the coming week, gold is expected to remain range-bound between ₹1,18,500 and ₹1,24,000,” Trivedi added.

Global sentiment also improved slightly after reports suggested positive progress in U.S.-India trade discussions, which lifted optimism across emerging markets.

IPO Buzz and Market Outlook: Volatility May Persist

The primary market continued to attract strong investor participation, with Billionbrains Garage Ventures’ ₹6,600 crore IPO witnessing 15 times oversubscription. Additionally, SEBI’s assurance that weekly options expiry would not be abruptly discontinued provided relief to derivatives traders and supported capital market stocks.

Analysts expect the Nifty 50 to trade within a 25,300–25,700 range in the short term, with financials likely to remain in focus.

“The market’s recovery from lows signals underlying resilience, but global volatility and foreign selling could keep upside capped in the near term,” said a senior analyst at Kotak Securities.

• Nifty 50
• Bank Nifty
• Sensex

Frequently Asked Questions NSE BSE

Why did the Nifty and Sensex rebound from intraday lows despite weak global cues?

The Nifty and Sensex rebounded from their intraday lows primarily due to value buying near key technical support levels and renewed investor interest in financial and metal stocks. Bargain hunters took advantage of early dips, while speculation about an FDI cap hike in PSU banks further lifted market sentiment.

What factors supported the recovery in financial and banking stocks today?

Financial and banking stocks gained momentum as investors looked for stability amid market volatility. The Nifty Financial Services and Bank Nifty indices rose on the back of solid earnings from key players like Bajaj Finance and Shriram Finance, along with speculation of policy reforms supporting PSU banks.

Which sectors contributed most to the Nifty and Sensex market recovery?

The recovery was led by the financial services, metal, and auto sectors, which posted notable gains. The Nifty Metal index surged over 1.4%, while Financial Services rose 0.76%. These sectors benefited from renewed domestic buying and optimism around India’s economic fundamentals.

Who were the top gainers and losers in the Indian stock market today?

Top gainers included Shriram Finance (+3.81%), Bajaj Finance (+2.66%), and Adani Enterprises (+2.61%), while Bharti Airtel (-4.46%), Tata Consumer (-1.97%), and Tech Mahindra (-1.87%) were among the biggest losers. Financials and metals outperformed, while IT and FMCG sectors remained under pressure.

What is the short-term outlook for the Nifty 50 and Bank Nifty after today’s rebound?

Analysts believe the Nifty 50 may continue to trade within the 25,300–25,700 range, with the medium-term trend staying positive. The Bank Nifty could extend its uptrend if financial stocks sustain buying momentum. However, foreign investor outflows and weak global cues may keep volatility elevated.

How did the rupee and gold prices behave amid the market volatility?

The Indian rupee traded between 88.40 and 88.75, reflecting pressure from persistent FII selling. Meanwhile, gold prices remained steady near ₹1,21,111 per 10 grams, supported by a weaker dollar and safe-haven demand amid geopolitical uncertainties.

What upcoming factors could influence the Indian stock market next week?

Next week’s market movement may hinge on domestic inflation data, FII flows, and updates on U.S.-India trade negotiations. Additionally, global commodity prices, rupee movement, and key corporate earnings will shape investor sentiment in the near term.