Benchmark indices staged a sharp late-session recovery on Monday, with financial and auto stocks leading gains as investors resorted to value buying after the recent sell-off.

At the close, the BSE Sensex surged 938.93 points to settle at 75,502.85, while the NSE Nifty 50 advanced 257.70 points, or 1.11%, to end at 23,408.80. The rebound came after a volatile session marked by sharp intraday swings.

During the day, the Sensex climbed as much as 1,241.35 points to touch an intraday high of 75,805.27, while the Nifty 50 rose nearly 350 points to hit 23,502 before paring some gains toward the close.

Among the top gainers on the Nifty 50 were UltraTech Cement, Grasim Industries, Mahindra & Mahindra, Eternal and Trent, while Bharat Electronics, Max Healthcare, Wipro, Coal India, ONGC and Dr Reddy’s Laboratories ended the session among the laggards.

What boosted investor sentiments?

Market participants attributed the rebound largely to value buying in beaten-down stocks, particularly in domestic-facing sectors.

Vinod Nair, head of research at Geojit Investments Limited, said the recovery was driven by bargain hunting following the recent correction.

“The equity market staged a late-session rebound, supported by value buying in domestically oriented sectors such as auto, banking, and FMCG, a relief rally following the recent sell-off. Near-term challenges persist; however, valuations have moderated, narrowing the premium valuation gap across several key sectors,” he said.

Nair added that investors remain watchful of geopolitical developments in West Asia, particularly around the Strait of Hormuz, a critical route for global energy shipments.

“In the near term, investor sentiment will hinge on developments in the Strait of Hormuz, where any easing of supply chain disruptions could provide further support. However, persistently elevated oil prices continue to weigh on broader market direction. Globally, attention remains focused on the upcoming U.S. Federal Reserve policy outcome,” he said.

Is a technical pullback on cards?

According to Vatsal Bhuva, technical analyst at LKP Securities, the banking index may see a short-term rebound after recent declines.

“The Nifty Bank ended the session with a mild uptick as buying interest emerged near the crucial support zone of 53,500. Momentum indicators remain in oversold territory, suggesting the possibility of a short-term rebound,” he said.

“If the recovery sustains, the index may move towards the 55,000 zone in the near term. However, this should be seen as a technical pullback after the recent sharp decline and not necessarily a trend reversal. Immediate support is placed at 53,500, while 55,000 will act as the key resistance,” Bhuva added.