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Market Makes a U-Turn, Sensex and Nifty Surge Over 1% After Recent Tumble

Markets took a U-turn on Tuesday as benchmark equity indices, Sensex and Nifty, surged by more than 1 per cent in the morning trading hours

Stock Market Today: After a bloodbath on D-street, benchmark indices, Sensex and Nifty took a U-turn from Monday's trajectory and surged by more than 1 per cent during the early trading hours on Tuesday.

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At 10:15 AM, the BSE Sensex was up nearly 0.94 per cent, gaining nearly 740 points and was trading at 79,499 level. Whereas, the 50-company index, NSE Nifty was trading at 24,291, up by 235 points or 0.98 per cent.

"When market valuations are elevated, unexpected news and events trigger a market crash. This was what happened yesterday in most asset classes, globally. Fears of recession in the US and unwinding of the Yen carry trade along with tensions in the Middle East contributed to the crash," said V K Vijayakumar, chief investment strategist, Geojit Financial Services.

Yesterday's fall was largely fueled by bearish sentiment dominating global markets. NASDAQ, the tech-heavy index entered in the correction territory as the AI hype started losing its steam. Meanwhile, the uncertainty owing to the middle-east conflict between Israel and Iran also took the better of investors.

Concerns over Japan's Nikkei also took a sharp decline and fell by nearly 15 per cent yesterday.

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"It is important to understand that the correction in India was relatively lower compared to most markets. Once again, domestic investors came to the rescue of the market with DII buying of Rs 9,155 crores when FIIs sold for Rs 10,073 in the cash market. But for the DII buying the crash would have been steeper," Vijayakumar added.

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