Benchmark stock market indices staged a remarkable recovery during the trading session, bouncing back from sharp intraday losses to close with only marginal declines. The S&P BSE Sensex, which had plunged nearly 850 points earlier in the day, managed to pare most of its losses and ended the session 122.52 points lower at 76,171.08. Similarly, the Nifty 50 rebounded significantly, closing 26.55 points lower at 23,045.25.
Broader market indices mirrored this trend, recovering from deep declines to finish with minor losses. The session was marked by volatility as investors reacted to concerns over high market valuations and subdued corporate earnings growth for the third quarter.
Among the top gainers on the Nifty50 were Bajaj Finserv, SBI Life, Shriram Finance, HDFC Life, and Tata Steel. Conversely, the biggest laggards included Mahindra & Mahindra, Eicher Motors, Bharat Electronics Ltd (BEL), Power Grid Corporation, and IndusInd Bank.
Vinod Nair, Head of Research at Geojit Financial Services, noted that while the market saw a partial recovery from the sharp intraday decline, overall sentiment remained fragile. He attributed this weakness to stretched broader market valuations and underwhelming Q3 earnings growth.
Adding to the cautious mood was the U.S. Federal Reserve’s recent statement, which indicated that it was "not in a hurry to lower interest rates" and would pause rate cuts to assess further inflation trends. This stance dampened investor confidence, as markets had been hoping for a more dovish outlook from the Fed.
Additionally, Nair highlighted the uncertainty surrounding the impact of potential metal tariffs, which contributed to the cautious market sentiment. Looking ahead, he pointed to the upcoming U.S. Consumer Price Index (CPI) inflation data as a key event that could influence market direction. With expectations suggesting little change in inflation, investors remain on edge about the possibility of further pressure on equities.
