Nifty snapped a four-day losing streak on Monday, closing at 22,753.20 after a dramatic recovery. While Sensex gained 482.92 points, the rupee hit a three-session low at 95.19 against the dollar. Hariselvan Radhakrishnan said, “The rebound was triggered by buying near the recent support zone and strength in heavyweight stocks.”
Markets pulled off a dramatic turnaround on Monday, with the Nifty 50 touching an intraday low of 22,387 before clawing back nearly 370 points to close well in positive territory.
The Sensex settled at 73,606.75, gaining 482.92 points or 0.66 per cent, after bottoming at 72,514.57 intraday. The Nifty 50 closed at 22,753.20, up 153.20 points or 0.68 per cent, snapping a four-session losing streak. Broader markets outpaced the benchmarks, with the Nifty Midcap 100 rising 1.19 per cent and the Nifty Smallcap 100 gaining 1.38 per cent, a partial recovery after last week’s combined collapse of over 12 per cent.
“The rebound was triggered by buying near the recent support zone, a pullback in crude from last week’s high and strength in healthcare and select heavyweight stocks,” said Hariselvan Radhakrishnan, Founder and CEO of HST Wealth.
Sectorally, Metal, Pharma, Healthcare, Oil and Gas and Capital Goods led the advance. The Nifty Metal index gained 2.2 per cent, supported partly by India’s draft National Steel Policy Vision 2047, which targets domestic crude steel capacity of 604 million tonne. Nifty Pharma added 1.8 per cent on defensive buying. Media and Consumer Durables were the only sectors to end lower. Dr. Reddy’s Laboratories topped the Nifty 50, jumping 7.08 per cent to ₹1,316.60, while JSW Steel gained 4.27 per cent to ₹1,236.10. Shriram Finance remained the session’s biggest drag, declining 4.47 per cent to ₹826.35, followed by Tata Consumer Products, which fell 3.64 per cent to ₹928.85.
Despite the equity recovery, the rupee weakened for a third straight session, falling 25 paise to close at 95.19 against the US dollar, pressured by softer Asian currencies and rising domestic bond yields. Brent crude eased to around $115 per barrel from Friday’s near six-month high of $116.72, though West Asia supply risks kept prices elevated. “Persistent tensions in West Asia, including attacks on Saudi infrastructure, have kept concerns over global energy supplies alive,” said Ajit Mishra, SVP, Research at Religare Broking.
The week ahead is heavy with macro events. The US Federal Reserve announces its rate decision on October 28, followed by the European Central Bank on October 29 and the Bank of Japan on October 30. “With three major central-bank decisions on deck this week, volatility is likely to stay elevated,” said Dilip Parmar, Research Analyst at HDFC Securities. On the earnings front, Tata Steel, Waaree Energies and United Breweries are among the companies reporting results on Tuesday.
“Markets are expected to trade sideways until greater clarity emerges on global cues and policy decisions,” said Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services, adding that continued attacks on Saudi Arabia have kept supply disruption concerns elevated. For the Nifty, a sustained close above 22,800 is widely seen as the level needed to extend the recovery toward 23,000, while 22,600 is the floor traders will watch.