The Indian stock market recovered from early losses on Dalal Street (D-Street) following a turbulent trading session, but the Nifty 50 is still under pressure because of weak global cues and conflicting investor sentiment.

The tug-of-war between bulls and bears was evident in the Sensex’s sharp intraday swings. FMCG and pharmaceutical heavyweights limited gains, while banking, energy, and IT companies provided much-needed support. Investor confidence remains influenced by global interest rate uncertainty, FII outflows, and corporate earnings trends.

1. Morning Selloff Followed by Afternoon Recovery

Due to unfavorable signals from European and Asian indices, the market opened sluggish. Early selling was triggered by rising oil costs and persistent inflation concerns worldwide.

However, as the afternoon progressed, domestic buyers stepped in, helping the Sensex recover most of its intraday losses. Despite technical pressure, the Nifty 50 displayed strength by climbing from below 22,200 to finish close to 22,400 levels.

2. Market Mood Still Driven by Global Cues

Because of the uncertainty surrounding the US Federal Reserve’s upcoming rate decision, global markets have remained unstable. Investors fear that rate cuts may be delayed if inflation stays above target for longer.

Furthermore, the AI-driven surge in US tech equities has subsided, making investors cautious. The spillover effect is evident in emerging markets like India, where Foreign Institutional Investors (FIIs) have recently turned net sellers.

3. Banking Stocks Lead the Partial Recovery

Banking and financial companies offered vital support despite the decline in broader indices. Shares of HDFC Bank, ICICI Bank, and Axis Bank saw buying interest after analysts highlighted the sector’s strong fundamentals — steady loan growth and declining non-performing assets (NPAs).

The Bank Nifty index smartly rebounded from its day’s low, showing that domestic institutions remain optimistic about the long-term prospects of India’s banking sector.

4. IT Stocks Display Mixed Patterns

The IT sector showed mixed results — while Infosys and TCS gained modestly, smaller IT firms lagged. Unclear order pipelines and weak global demand have made investors cautious.

However, as AI adoption and digital transformation initiatives accelerate globally, many experts expect a recovery in the IT space in the upcoming quarters.

5. Crude Oil Prices and Rupee Movement Impact Sentiment

Rising crude oil prices have added pressure to India’s import bill and inflation outlook. The Indian Rupee weakened slightly against the US dollar due to concerns about widening trade imbalances.

As the rupee depreciates, imports become more expensive — affecting companies dependent on international raw materials. Traders have become more cautious, particularly in chemical, oil, and energy sectors.

6. FII and DII Activity

To help stabilize the market, Domestic Institutional Investors (DIIs) bought approximately ₹1,500 crore worth of stocks, while Foreign Institutional Investors (FIIs) sold shares worth about ₹1,200 crore.

This consistent domestic inflow has helped India remain relatively stable compared to other emerging markets. The strength of local investors continues to provide a buffer against global volatility.

Conclusion

While short-term fluctuations persist due to global headwinds, the underlying fundamentals of the Indian economy remain strong. Investors are advised to stay cautious in the near term but focus on quality sectors like banking, IT, and infrastructure for long-term gains.