Sensex recovers 300 points from day's low: What's driving rally?
What's the story
The benchmark indices, Sensex and Nifty, have staged a recovery from their early losses today. The turnaround was aided by value buying in select sectors such as consumer durables, FMCG (Fast-Moving Consumer Goods), and IT. At around 12:30pm the Sensex had gained over 300 points to trade at 85,245.18, while the Nifty was above the 26,000-mark at 26,034.15.
Market fluctuations
Initial market dip and subsequent recovery
Earlier in the day, the Sensex had dropped by as much as 427.34 points to a low of 84,840.32, while Nifty fell by 142.2 points to a low of 25,904.75. The early decline was in line with global markets' weakness, persistent foreign fund outflows, and uncertainty over an India-US trade deal. However, buying interest emerged as valuations turned attractive, leading to today's recovery trend across sectors such as consumer durables, FMCG, and IT stocks, among others.
Market drivers
US market cues and FMCG stocks boost recovery
The recovery was also aided by firm cues from US markets with futures trading higher by up to 0.3%, signaling a positive opening for Wall Street. This improved sentiment in domestic equities. Additionally, FMCG stocks rebounded after a fall in the previous session with Britannia Industries and Marico among top gainers on Nifty FMCG index rising up to 2%.