Mumbai witnessed a high-voltage trading session on Monday as the Sensex today scripted a strong intraday recovery, swinging nearly 1,000 points from its lowest level. After opening on a sharply negative note and slipping close to 700 points in early trade, the benchmark index reversed course by mid-session and ended the day 302 points higher at 83,878.
This marked the first positive close after five straight sessions of losses, during which the Sensex had shed nearly 2,200 points or about 2.5%. The sudden rebound brought much-needed relief to investors who had been rattled by global uncertainties and weak cues from overseas markets.
The broader sensex nifty stock market sentiment improved as optimism around an India–US trade deal gained traction, helping domestic equities shrug off early fears.
What Triggered the Early Sell-Off?
The sharp fall in the opening trade was driven largely by unsettling global news. Reports that the US government’s justice department had opened a criminal probe against the US central bank chairman Jerome Powell sent shockwaves across global financial markets.
Such developments sparked fears that policy uncertainty in the US could lead to tighter financial conditions and potentially higher global interest rates. Asian markets reacted nervously, and Indian equities followed suit, with heavy selling seen in banking, IT, and metal stocks during the initial hours.
This uncertainty spilled over into Indian benchmarks like the BSE Sensex and Nifty 50, pulling both indices deep into the red during early trade.
Trade Deal Optimism Sparks Mid-Session Turnaround
The mood on Dalal Street shifted dramatically around mid-session. Investor sentiment improved after remarks from the US Ambassador in India indicated that an India–US trade deal was nearing closure.
These comments revived hopes of smoother trade relations, improved exports, and better growth prospects for Indian companies. As a result, buying interest returned swiftly, lifting heavyweight stocks and pushing the indices higher.
Market participants saw the potential deal as a strong positive for sectors like IT, pharmaceuticals, engineering goods, and metals—key drivers of India’s export economy.
By the closing bell, the share market today had not only erased all early losses but also ended firmly in positive territory.
Investor Wealth Jumps by ₹1 Lakh Crore
The rebound had a direct impact on investor wealth. With the Sensex closing higher, the total market capitalisation of the Bombay Stock Exchange rose by nearly ₹1 lakh crore in a single session.
At the end of Monday’s trade, the BSE market capitalisation stood at approximately ₹468.7 lakh crore. This sharp recovery underscored how quickly sentiment can shift in today’s headline-driven markets.
According to Vinod Nair, Head of Research at Geojit Investments, the domestic market rebounded from the day’s lows as investor sentiment improved following favourable remarks on trade deals ahead of the next round of negotiations. He noted that this positive undertone provided support to overall market sentiment.
Gold and Silver Hit New Highs Amid Global Uncertainty
While equities recovered, global uncertainty continued to drive strong demand for safe-haven assets. Precious metals rallied sharply, with gold and silver prices touching fresh record highs in both international and domestic markets.
On Comex in New York, gold prices surged past the $4,600 per ounce mark. In the Indian market, MCX gold February futures traded above ₹1.4 lakh per kg, reflecting strong domestic demand and global cues.
Silver also joined the rally. Comex silver prices climbed above $85 per ounce, while MCX silver February futures crossed ₹2.69 lakh per kg. The surge in precious metals highlighted ongoing investor caution despite the equity market rebound.
Dollar Weakens, Rupee Gains Slightly
The US dollar showed signs of weakness against major global currencies, mainly due to concerns surrounding the US Federal Reserve leadership and rising geopolitical tensions, including speculation about possible US intervention in Iran.
The dollar index, which measures the greenback’s strength against a basket of major currencies, slipped around 0.3%. This provided marginal relief to emerging market currencies.
In India’s interbank forex market, the rupee strengthened slightly and closed at 90.16 against the US dollar, compared with 90.22 in the previous session. Currency traders said the modest gain was supported by dollar weakness, even as global volatility capped sharper appreciation.
Nifty 50 Mirrors Sensex Recovery
The Nifty 50 today also mirrored the Sensex’s intraday recovery. After opening lower, the index gradually moved up as buying emerged across key sectors. Banking, FMCG, and select IT stocks led the rebound, while metals saw mixed action amid fluctuating global cues.
For investors tracking nifty today live and sensex today live, the session served as a reminder of how fast sentiment can change in response to global developments and policy-related headlines.
Stocks such as large-cap financials and export-oriented companies attracted renewed interest, while broader markets remained relatively stable by the close.
What This Means for Investors
Monday’s volatile session underlined the fragile balance between global risks and domestic optimism. On one hand, concerns over US monetary policy and geopolitical tensions continue to pose risks. On the other, progress on trade negotiations and stable domestic fundamentals offer support to Indian markets.
For retail investors searching for stock market news, the key takeaway is the importance of staying disciplined during volatile phases. Sharp intraday swings, like the 1,000-point move in the Sensex, can test patience but also create opportunities for long-term investors.
Market experts advise focusing on quality stocks, keeping an eye on global cues, and avoiding knee-jerk reactions to short-term news flow.
Outlook: Volatility Likely to Continue
Looking ahead, analysts expect volatility to remain elevated in the near term. Global developments, especially related to US policy decisions, commodity prices, and geopolitical events, will continue to influence Indian markets.
Updates on the India–US trade deal, movements in gold and silver prices, and trends in the dollar index will be closely watched. For now, the strong rebound has injected fresh confidence into Dalal Street, but caution remains the watchword.
As always, investors tracking market news, sensex share price, nifty share price, and global cues like hang seng share bazar should brace for more swings while keeping a long-term perspective.
