Sensex Jumps 450 Points From Day’s Low
Share market: Indian stock markets opened with heavy losses for the second consecutive day on Tuesday, 9th December. The Sensex fell 633 points at one point, while the Nifty slipped to 24,750. However, by afternoon, the market recovered a significant portion of its losses. The Sensex rose nearly 450 points from its day’s low of 84,382. The Nifty also managed to recover above 25,900. However, both indexes remained in the red.
At 12:20 pm, the Sensex was trading 244.07 points, or 0.29%, lower at 84,858.62. The Nifty was down 48.85 points, or 0.19%, at 25,911.70.
1. Fall in crude oil prices: On Tuesday, the price of Brent crude oil fell 0.21% to $62.36 per barrel in the international market. Falling crude oil prices reduce pressure on India’s import bill and inflation, which directly benefited domestic stock market sentiment and increased buying on dips.
2. Value Buying at Lower Levels: In early trading today, the Sensex fell 633.90 points, or 0.74 percent, to 84,468.79. The Nifty fell 211.25 points, or 0.81 percent, to 25,749.30. All 16 major sectoral indices were also trading in the red. However, after the initial sharp decline, investors began value buying in select stocks at lower levels. This buying, taking advantage of lower prices, helped the indexes stabilize and reduce the decline.
3. The decline in mid-cap and small-cap stocks has stopped: The broader market also saw a sharp decline in early trading today. The Nifty Midcap-100 index fell to 58,545.40, down nearly 4.5% from its 52-week high set on 1st December. The Nifty Smallcap-100 index, meanwhile, fell nearly 15% from its December 12, 2024, high. However, by midday, both the midcap and smallcap indexes had significantly pared their losses and returned to the green. This provided additional support to market sentiment and strengthened the recovery in the Sensex-Nifty markets.
