Bargain buying lifts markets as Sensex, Nifty rebound 0.8% after sharp fall
After declining two per cent in the preceding two trading sessions, benchmark indices Sensex and Nifty rebounded on Monday, led by bargain buying in index heavyweight HDFC Bank.
The Sensex, which had slipped nearly 350 points intraday, staged a strong recovery to close at 83,277, up 650 points, or 0.8 per cent. The Nifty ended the session at 25,683, also gaining 212 points, or 0.8 per cent. Total market capitalisation of BSE-listed companies rose by ₹3.1 trillion to ₹469 trillion.
Market participants attributed Monday’s rebound to bargain hunting, particularly as investors rotated funds out of IT stocks, which saw heavy selling last week amid concerns over artificial intelligence-led disruption. The Nifty IT index had declined 8.2 per cent last week — its steepest weekly fall since April 4, 2025. On Monday, the index was largely flat, edging up 0.2 per cent.
“With the results season ending on a strong note, the gradual upmove may continue, leading to selective bottom-up opportunities in the market,” said Siddhartha Khemka, head of research (wealth management) at Motilal Oswal Financial Services.
“The upcoming Infosys AI-focused investor meet and the ongoing AI Impact Summit in Delhi are expected to provide direction for IT and IT services companies. Updates on enterprise AI adoption, monetisation, deal pipelines and the regulatory outlook will be closely tracked,” he added.
Going ahead, investors are also expected to track further developments related to the India–US trade agreement for market cues.
“Market sentiment remained fragile as continued selling in technology stocks weighed on confidence. However, strength in banking and select heavyweight stocks helped absorb the pressure and triggered a rebound,” said Ajit Mishra, senior vice-president (research) at Religare Broking.
“We maintain a cautious stance due to ongoing choppiness and mixed cues. The weekly expiry could lead to heightened volatility on Tuesday,” he added.
Market breadth remained negative, with 2,565 stocks declining and 1,747 advancing. Axis Bank, ITC and Bharti Airtel were among the other major contributors to Sensex gains.
