Sensex Climbs Past 76,000 as Value Buying Triggers Reversal from Early Plunge

Sensex Climbs Past 76,000 as Value Buying Triggers Reversal from Early Plunge​

Indices Trim Losses Amid Value Flow and Asian Rally Support​

The benchmark equity indices managed to trim significant early losses on Thursday following a move towards value buying at lower price levels. This recovery was supported by firm performing markets across Asia and a slight strengthening of the rupee.

Earlier in the session, the Sensex had seen substantial downside pressure, sinking 410.83 points or 0.53 percent to trade at 76,344.67. Similarly, the broader Nifty declined by 120.05 points or 0.5 percent, reaching 23,876.20 before the recovery phase.

By around 10:15 am, however, buying at discounted levels helped boost both indices. The Sensex had recovered more than 250 points from its day's low, trading at 76,636.44, marking a loss of 0.15 percent. Nifty followed suit, narrowing losses to trade at 23,966.65, down only 0.12 percent.

The India VIX, which gauges market volatility, turned negative at 13.14 after initially trading in the green. This shift suggests a moderation of near-term market concerns among investors.

Key Factors Fueling Market Recovery​

One critical factor noted was a clear trend of value buying emerging across select stocks. This pattern came as benchmark indices had been under pressure for three consecutive sessions, leading investors to purchase quality stock at lower price points.

Support also came from the Asian markets, which showed positive movement. South Korea's KOSPI surged 3.15 percent. Both Japan's Nikkei 225 and Hong Kong's Hang Seng also traded in positive territory, lending a tailwind to domestic equities.

Additionally, the rupee strengthened marginally, appreciating by 5 paise to 96.48 against the US dollar. This improvement occurred despite continued pressure on global crude oil prices due to escalating tensions in West Asia.

Oil Stocks and Sectoral Strength Emerge​

Upstream oil companies exhibited strength as higher crude oil prices are viewed positively for their exploration and production. ONGC gained 0.5 percent, while Oil India recorded a gain of 1.8 percent.

In other sectoral news, NTPC Green Energy surged by 7.4 percent following the report of a marginal rise in its quarterly profit.

Technical Outlook Remains Cautiously Neutral​

Anand James, Chief Market Strategist at Geojit Investments, offered a measured technical perspective on the indices. He noted that the inability for indices to maintain levels above key pivots leaves the current trend vulnerable to further declines.

While a significant market collapse is considered unlikely, he pointed out that 23750 remains exposed. Intermittent attempts to rise may occur, but these must push beyond 24000 before they can signal genuine strength. He concluded by maintaining that prospects for directional moves appear low at this time.