Markets turn positive: Sensex rebounds 1,000 points from intraday low, Nifty hovers near 25,250; seven reasons behind the sharp bounce

The benchmark indices Sensex and Nifty staged a strong comeback as bargain hunting emerged after markets extended the previous session’s steep sell-off during early trading hours. Indian equity benchmarks erased early losses by midday on Wednesday, supported by value buying following a sharp initial decline, although market volatility remained elevated. In early trade, the Sensex tumbled 1,056.02 points, or 1.28 percent, to hit an intraday low of 81,124.45. The Nifty dropped 312.7 points, or 1.23 percent, to 24,919.80, slipping below the 25,000 mark for the first time in more than four months. By around 12.45 pm, however, stocks recovered as buyers stepped in at lower levels. The Sensex rebounded nearly 1,000 points from the day’s trough to trade at 82,171.77, while the Nifty climbed back above 25,200 to quote at 25,232.95, marginally higher on the day. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.