Indian Stock Market Recovers Over 1% After Recent Crash

Indian Equity Markets Rebound Sharply on Friday

Market Highlights

• The Sensex rose 802 points (1.1%) to 75,009 at 09:17 am, while the Nifty gained 250 points to 23,252.
• Market breadth was strong, with 1,846 shares advancing against 446 declines.

Global Sentiment Improves

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

• Crude oil prices eased to around $105 per barrel from highs near $119, following efforts to secure shipping routes through the Strait of Hormuz and boost supply.
• Global markets stabilised after Thursday's rout, with Asian markets trading mixed to positive and US equities ending lower but off session lows.

Sectoral Performance

• IT stocks led the rebound, with Tech Mahindra rising over 2.7% and Infosys and HCL Technologies gaining around 2-2.5% each.
• Cyclicals also performed well, with Tata Steel, JSW Steel, and Larsen & Toubro advancing, reflecting broad-based buying.
• Financial stocks recovered after sharp losses in the previous session, with SBI and ICICI Bank rising over 1.5-2%.

Market Indicators

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

• The India VIX declined over 4%, signalling some easing in volatility.
• Foreign institutional investors remained sellers, offloading equities worth over Rs 7,558 crore on March 19, while domestic institutional investors continued to provide support with purchases worth around Rs 3,864 crore.

Analyst Views

• Market volatility is expected to continue in the near term, with gains accumulated in the previous three sessions being wiped out by yesterday's sharp fall.
• The recent cooling in crude prices and indications of de-escalation could support a near-term bounce, with beaten-down financials and auto stocks likely to see recovery.