Sensex surges 1,000 points. All you need to know in 5 points

The Indian stock markets staged a strong recovery on Tuesday after a seven-day losing streak, with the Sensex rising by over 1,000 points. As of 11:36 am, the Sensex was trading at 78,383.90, up 1,044.89 points, while Nifty climbed 304.50 points to 23,758.30.
The rally saw the market capitalisation of all listed companies on the Bombay Stock Exchange (BSE) jump by Rs 6.06 lakh crore to Rs 435.14 lakh crore.
Blue-chip stocks, including HDFC Bank, Infosys, Reliance Industries, TCS, and M&M, led the recovery, contributing 620 points to the Sensex. Other key players such as ITC, L&T, Tata Motors, and Tech Mahindra also boosted market sentiment.
Broad-based buying was observed across all sectors, with indices like Nifty Auto, IT, Media, Realty, and Consumer Durables gaining between 2% and 4%. The India VIX, a measure of market volatility, fell by 5.3%, settling at 14.37.
Here are the key reasons behind the market rally:
Global brokerage firms have turned optimistic about India. CLSA, Citi, and HSBC have recently increased their focus on Indian markets, shifting attention away from China due to economic concerns there.
CLSA reversed its earlier stance favouring China, citing ongoing trade tensions and concerns about the Chinese economy. Citi has raised its overweight allocation on India to 20%, reflecting confidence in India’s economic stability. HSBC remains bullish on Indian markets, maintaining an “Overweight” stance with a Sensex year-end target of 90,520 for 2025, implying a 15% upside from current levels.
China’s recent decision to end export tax rebates for key commodities like aluminium, copper, and biofuel feedstocks has supported Indian market sentiment. This policy change, effective from December 1, 2024, removes a 13% tax relief on these exports.
The announcement boosted the Indian Nifty Metal index, which rose by around 2.3% over the past two trading sessions. This has improved investor confidence in Indian commodities and related sectors.
Investors took advantage of the recent market correction, which saw the Nifty index drop over 10% from its peak. Mid-cap and small-cap indices also fell sharply, by about 12% and 11.5%, respectively.
The current rally reflects renewed investor interest, as buyers look to capitalise on attractive valuations in the hope of a long-term recovery.
From a technical perspective, the markets were deeply oversold, with short-term momentum indicators suggesting a rebound. Analysts noted that such extended losing streaks, as seen in February 2023, often lead to a relief rally.
Akshay Chinchalkar, Head of Research at Axis Securities, highlighted the importance of holding the 23,200-23,300 support zone for Nifty, while aiming for an upside resistance of 23,680.
“Short-term momentum is also deeply oversold with the current decline dropping below the regression channel drawn from the March 2023 lows, which means statistically speaking, a bounce is overdue,” said Akshay Chinchalkar, as quoted by The Economic Times.
Anand James of Geojit Financial Services said that the Relative Strength Index (RSI) indicates a possible revival. However, he suggested limiting expectations to 23,733-23,788 for now.
Indian markets also mirrored gains in global equities. Asian markets advanced as U.S. bond yields and the dollar eased from recent highs. Japan’s Nikkei rose 0.5%, reflecting positive global sentiment, although Chinese stocks remained muted amid concerns about trade policies and Beijing’s stimulus measures.
U.S. S&P 500 futures were marginally higher, and European STOXX 50 futures rose by 0.3%, adding to the positive momentum.
Despite the rally, analysts caution that the upward trend might be temporary.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “An important takeaway from the recent market trend is that a quick and sharp recovery is not in sight. The momentum that drove the market to its record peak of 26,216 in September is gone.”
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)