The Indian equity market witnessed a significant intraday recovery today, with the benchmark Sensex bouncing back over 850 points from its day's low. This resurgence was primarily fueled by a Bloomberg News report suggesting that the government is preparing a fresh set of measures to attract overseas capital, notably including tax relief for foreign investors and easier access to government bonds.
Despite the strong recovery, the Sensex ultimately closed 304 points lower at 74,346, while the Nifty slipped 78 points to settle at 23,405. The Sensex had touched a day's low of 73,492 before its substantial rebound.
Top Movers on the Dalal Street
Among the Sensex constituents, several stocks posted gains. IndiGo led the pack with a 1.57% rise, followed by SBI (1.43%), ICICI Bank (1.30%), and Trent, all showing positive movement.
Conversely, some major IT and consumer goods companies faced losses. TCS, Tech Mahindra, Infosys, HCL Tech, and ITC were among the top Sensex losers, with declines of up to 8.43%.
Analyst Outlook on Market Trend
Rupak De, Senior Technical Analyst at LKP Securities, commented on the market's performance, stating, "The index recovered smartly during the day but failed to reclaim the 20 EMA on the hourly chart, keeping the possibility of another decline alive." De highlighted a "lower-top, lower-bottom formation" on the hourly timeframe, indicating a bearish trend in the recent price structure. However, he also noted a "positive divergence on the hourly RSI, suggesting some improvement in momentum." He cautioned that the short-term trend remains weak, with a potential move towards 23,000 if the Nifty falls below 23,300, while 23,600 is likely to act as a crucial resistance level.
Previous Session's Performance
In the preceding session, domestic equity benchmarks BSE Sensex and NSE Nifty had snapped a four-day losing streak. This was attributed to value buying at lower levels and gains in information technology (IT) stocks, amidst ongoing geopolitical uncertainties. The Sensex had jumped 382.50 points, or 0.52%, to close at 74,649.84, and the Nifty advanced 100.95 points, or 0.43%, to settle at 23,483.55.