Sensex Rallies 450 Points from Day's Low, Nifty Surpasses 24,150: Market Turmoil Turns Amid 6 Key Factors

Indian Equity Markets Recover from Early Losses Amid Global Stability

The benchmark equity indices, Sensex and Nifty, staged a recovery from early losses on Tuesday, as investors stepped in to buy stocks at lower levels. The Sensex had opened at 76,973.54, a decline of 330.09 points or 0.42 percent from the previous day's close. The broader Nifty also fell, down 93.45 points or 0.38 percent to 23,999.25.

However, by around 10:10 am, the Sensex had rebounded to 77,424.09, an increase of 120.46 points or 0.16 percent from the opening level. The Nifty also showed gains, advancing to 24,161.50, up 68.80 points or 0.29 percent from the opening level.

The recovery in the Indian equity markets can be attributed to several factors, including value buying, a decline in the India VIX, firm global cues, and easing geopolitical concerns.

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

The India VIX, a measure of market volatility, fell 3 percent to around the 18 level, indicating reduced market uncertainty and risk perception. A lower VIX typically supports equities, leading to increased investor confidence.

Asian markets were mixed, with Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng trading lower, while South Korea's Kospi was higher. In the US, the S&P 500 and Nasdaq ended at fresh record highs on April 27, driven by gains in technology stocks, including Nvidia and Alphabet.

The upcoming Federal Open Market Committee (FOMC) meeting on April 28-29 is also expected to remain unchanged, with stable rates in the US seen as positive for emerging markets like India. This stability helps sustain foreign investment flows, supporting the Indian equity markets.

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

The easing of geopolitical tensions, particularly in the Strait of Hormuz, also contributed to the recovery in the Indian equity markets. Iran's offer to ease tensions subject to certain conditions involving the US is seen as a positive development, reducing investor risk perceptions globally.

Tuesday being the Nifty expiry day also contributed to the volatility in the market. On such days, traders adjust or roll over positions, leading to sharper intraday movements.

On Monday, both the Sensex and Nifty had ended a three-session losing run, led by a rebound in information technology stocks following last week's sharp selloff.