Sensex up 330 points from today's low: What's the reason?
What's the story
The benchmark indices, Sensex and Nifty, have staged a strong recovery after an early morning slump today. The turnaround comes mainly due to value buying in beaten-down stocks and a slight easing of crude oil prices. At around 3:00pm, the Sensex was up by 335.45 points or 0.46% at 73,459.28, while the Nifty traded at 22,699.10 up by 99.10 points or 0.44%.
Market factors
Value buying in beaten-down stocks
The market's recovery can be attributed to value buying in stocks that were beaten down after last week's sharp fall.
This trend is being seen as a major factor behind the turnaround.
Further, Brent crude futures are trading at around $114.5 a barrel, down from a near six-month high of $117 after the Indian market closed on Friday.
Investor influence
Foreign institutional investors bought equities worth ₹887.65cr
The market's recovery has also been fueled by foreign institutional investors (FIIs) buying equities worth ₹887.65 crore on Friday, as per exchange data.
This influx of investment from FIIs is seen as a positive sign for the Indian stock market and has contributed to the overall rebound of Sensex and Nifty today.