- After tumbling over 800 points in early trade, the Sensex staged a massive recovery of 850 points to turn green by midday.
- IT heavyweights like Infosys, TCS, and Wipro led the rebound, while banking and auto stocks remained under pressure.
- Markets remain on edge as U.S. President Donald Trump’s 8:00 PM ET deadline for an Iran ceasefire looms, with Brent crude hovering near $110-$112.
The BSE Sensex is currently off its day’s low, trading near 74,014 as of early afternoon. This represents a stunning intraday turnaround after the index crashed by more than 800 points in the opening hour due to escalating Middle East tensions. While the Nifty 50 also slipped below the 22,800 mark earlier, it has since reclaimed the 22,950 level, bolstered by selective buying in tech-driven segments and metal stocks.
IT stocks and metals rally amid global volatility
The primary driver behind the midday recovery is the outperformance of the Nifty IT index, which bucked the broader negative trend with a gain of nearly 1%. Wipro surged over 3%, while Infosys and TCS provided the necessary heavy lifting to pull the benchmarks out of the red. Additionally, metal stocks like Hindalco and Vedanta saw buying interest following analyst upgrades, even as rate-sensitive sectors like Auto and PSU Banks continued to drag on the indices.
Nifty IT and metal stocks lead market recovery amid volatility
The broader market sentiment remains fragile as investors monitor the US-Iran conflict. President Donald Trump has dismissed a proposed 45-day ceasefire as “not good enough,” maintaining a Tuesday deadline for the reopening of the Strait of Hormuz. Failure to reach a deal could lead to U.S. strikes on Iranian power plants, a prospect that has kept Brent crude elevated near $110-$112 per barrel. Higher oil prices continue to strain India’s import bill and fuel inflation concerns, leading experts like Ajay Bagga to warn against “rushing to buy the dip” just yet.
Sensex key technical levels to watch:
- Support: 73,500 This is the immediate area where the price found buyers today, aligned with recent structural support zones.
- Invalidation: 72,700 As long as the price stays above this prior structural low, the overall recovery trend from March lows remains technically intact.
- Resistance: 74,500 The Sensex needs to close a full day above this specific ceiling to prove the recovery momentum has officially taken hold.
- Next target: 75,000 If the index breaks through the 74,500 resistance, this psychological milestone is the next major objective for bulls.
Conclusion: Caution prevails ahead of RBI policy
While the intraday rebound is encouraging, the market remains “headline-driven”. With the RBI policy decision due on Wednesday, many economists expect the central bank to hold rates steady while assessing the impact of the Iran war on domestic growth and inflation. For traders, the key will be whether the Nifty can sustain above the 23,000 mark by the close. Until there is concrete de-escalation in West Asia, heightened volatility is expected to persist through the week.
The Sensex recovered over 850 points from its morning low primarily due to a rally in IT stocks like Infosys and TCS, as well as selective buying in the metal sector.
Trump’s 8:00 PM ET deadline for Iran has kept global markets on edge. If no deal is reached, potential military escalation could drive oil prices higher, which is historically negative for Indian equities.
Technically, the market is in a consolidation phase with high volatility. While it has shown resilience by bouncing off the 73,500 support, it needs to clear 74,500 to confirm a sustained uptrend.