Sensex rebounds 977 points from day’s low, Nifty recovers 319 pts to reclaim 22,700; brent crude oil, Fed in focus

Indian equity benchmarks staged a sharp recovery in early trade on Monday after falling nearly 1% in early trade, as investors bought beaten-down stocks following four consecutive sessions of losses. The Sensex rebounded 977 points from its day’s low, while the Nifty 50 recovered nearly 319 points to reclaim 22,700 level, supported by gains in metal, pharma and banking stocks.

At 10:21 am, the BSE Sensex was trading at 73,340.89, up 217.06 points, or 0.30%. The index had fallen as much as 609 points, or 0.83%, to hit a low of 72,514.57 in opening trade before recovering to a high of 73,491.97.

In a similar trend, the NSE Nifty 50 was up 56.90 points, or 0.25%, at 22,655 at the time of reporting. The index had dropped 212 points, or 0.94%, to a low of 22,387.35 before rebounding to an intraday high of 22,706.15.

The recovery followed a weak week for domestic equities, with the Nifty falling 2.4% and the Sensex declining 2.2% in the last five sessions, amid rising crude oil prices and escalating tensions in West Asia.

The direction of brent crude oil prices, geopolitical developments and the Fed’s policy signals are likely to remain key determinants of market sentiment in the near term, according to market analysts.

Metal, pharma stocks lead recovery

Among Sensex constituents, Adani Ports, Kotak Mahindra Bank, Eternal, Sun Pharmaceutical Industries and Tata Steel were among the leading gainers. Adani Ports rose 2.47%, Kotak Mahindra Bank gained 2.30%, while Eternal advanced 1.23%.

On the sectoral front, the Nifty Metal index gained 1.32%, followed by the Nifty Pharma index, which rose 1.10%. The Nifty Healthcare index advanced 0.91%, while the Nifty Media index gained 0.80%.

However, information technology stocks remained under pressure. Infosys fell 1.61%, while HCL Technologies declined 0.77%. The Nifty IT index was down 0.42%.

Crude oil, geopolitical tensions remain in focus

Crude oil prices and developments in West Asia remain key drivers of market sentiment. Brent crude futures retreated to around $110.30 a barrel after ending the previous week near $117, according to Hariselvan Radhakrishnan, founder and CEO of HST Wealth.

“The correction reduces the immediate intensity of the oil shock but does not yet alter its broader implications, as crude remains elevated and Middle East supply risks remain unresolved,” Radhakrishnan said.

He added that unless the decline in oil prices is sustained and accompanied by clearer geopolitical de-escalation, pressure on inflation-sensitive consumption and energy-intensive corporate margins is likely to remain a concern for investors.

Ponmudi R, CEO of Enrich Money, said Indian equities could remain under pressure from elevated crude prices, escalating geopolitical tensions and uncertainty over the US Federal Reserve’s policy outlook.

The Fed’s October 27-28 policy meeting is another key event for markets this week. Although the central bank is widely expected to leave interest rates unchanged, investors will look for signals on the future policy path.

“A hawkish shift in tone could keep US Treasury yields elevated, strengthen the dollar and constrain foreign portfolio flows into emerging markets,” Ponmudi said.

Meanwhile, the September-quarter earnings season is expected to drive stock-specific moves, with investors assessing corporate results, margins and management commentary for signs of resilience amid macroeconomic headwinds.

Foreign institutional investors bought equities worth ₹887.65 crore on Friday, although their cumulative withdrawals from Indian equities so far in October stood at ₹48,056 crore. Foreign investor selling moderated last week, with overseas investors turning net buyers on two trading days.