The markets recovered sharply from the day’s lows to end almost flat on Monday, with strong buying in information technology (IT) stocks helping erase early losses triggered by global concerns.
The BSE Sensex settled 47.55 points higher at 77,616.40, while the NSE Nifty 50 edged up 4.80 points to close at 24,211.30. In early trade, the Sensex had fallen over 700 points and the Nifty briefly slipped below the 24,000 mark as investors reacted to rising tensions in West Asia and higher crude oil prices.
However, buying interest returned during the second half of the session, especially in IT stocks, helping the benchmark indices recover nearly all their losses. Investors also remained optimistic ahead of the June-quarter earnings season.
TCS, HCLTech and Infosys were among the top gainers, with technology stocks leading the market rebound. Tech Mahindra and Wipro also traded higher as investors accumulated IT shares.
On the other hand, Eternal, Trent and IndusInd Bank ended among the biggest losers. Profit booking in select consumer and financial stocks kept overall market gains in check despite the late recovery.
Analysts said the initial sell-off was driven by uncertainty surrounding geopolitical developments and concerns over rising crude oil prices, which could impact inflation and corporate earnings. However, the strong comeback reflected investors’ willingness to buy quality stocks at lower levels.
Market experts believe the focus will now shift to corporate earnings, with IT companies expected to set the tone for the reporting season. Investors will also keep an eye on global cues, foreign institutional investor (FII) activity, inflation data and movements in crude oil prices.
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