Sensex, Nifty rebound 1,000 points from lows on RBI watch

Markets swing as early losses ease

Indian equities saw a sharp intraday recovery after a weak start, with heavyweight support from Reliance Industries and buying in select cyclical pockets helping benchmarks claw back from the day’s lows. A noon snapshot showed the Sensex down just 44.05 points, or 0.06%, at 75,156.80, while the Nifty was lower by 7.25 points, or 0.03%, at 23,610.75. The move highlighted a pattern seen across recent sessions: steep opening cuts followed by a partial or near-complete recovery as investors selectively add exposure in large caps. Traders also tracked sector rotation, with autos and oil-linked names cited among the early stabilisers.

Even as benchmarks steadied, the broader tone remained cautious due to a mix of global uncertainty and domestic event risk, with the Reserve Bank of India’s policy decision repeatedly cited as a key near-term trigger in market commentary.

A sharper rebound with banks in the lead

In another volatile session referenced in market updates, the Nifty rebounded more than 300 points from the day’s low and reclaimed the 23,700 level for the second consecutive day. The Sensex, too, bounced back nearly 1,000 points from intraday lows, indicating improved sentiment despite the risk-off mood abroad. Banking stocks led the recovery as Bank Nifty snapped a four-day losing streak, while midcap stocks outperformed the benchmarks, pointing to broader participation.

Market breadth was described as positive, and a 4% decline in India VIX was highlighted as a sign of easing volatility and a better risk appetite. Sectorally, metal and pharma indices extended gains for a second straight session, and auto and realty stocks recovered after four days of declines.

IT remains the outlier under pressure

While the bounce was broad-based in parts of the market, IT continued to drag. The IT index was reported to have fallen for the fourth consecutive day and was down nearly 7% for the week amid concerns over global growth and weak tech sentiment. This split in performance underlined the market’s preference for domestic and cyclical themes during risk-sensitive periods, while export-heavy tech faced sustained selling.

The pressure on IT also showed up in stock-specific moves mentioned for a later session: losses in Infosys, Tata Consultancy Services, Tech Mahindra and HCL Technologies were cited among factors pulling benchmarks lower.

RBI policy overhang and global cues drive caution

A separate update captured a more bearish mood ahead of the RBI policy announcement. Benchmark indices halted a three-day rally and closed with deep cuts on Thursday as global markets remained weak and investors turned cautious ahead of the central bank’s decision amid geopolitical uncertainties.

In that session, the BSE Sensex dropped 503.76 points, or 0.60%, to settle at 83,313.93 after falling to an intraday low of 83,151.62. The NSE Nifty declined 133.20 points, or 0.52%, to end at 25,642.80. Intense selling in metal, IT and capital goods stocks was cited as a key factor. Market participants were described as shifting focus to the RBI policy meeting, with the Monetary Policy Committee (MPC) decision scheduled to be announced by RBI Governor Sanjay Malhotra on Friday.

Friday’s weak start extends losses

On Friday, benchmarks opened lower for a second straight session as investors stayed cautious ahead of the MPC outcome. At the opening bell, the Nifty 50 was down 37 points, or 0.14%, at 25,605.80, while the Sensex opened 64.61 points, or 0.08%, lower at 83,249.32. One report noted that by 9:46 am, the Sensex was down 251 points at 83,062 and the Nifty was down 86 points to 25,556, after the Nifty touched an intraday low of 25,522.

Tech Mahindra was described as the top loser on the Nifty50, falling 2% to Rs 1,613, while several other large names were reported to have dropped between 1.35% and 1.9% in early trade.

Post-policy rebound after repo rate held at 5.25%

As the day progressed, equities trimmed early losses after the RBI MPC kept the repo rate unchanged at 5.25%. By 12:01 pm, the Sensex was up 140.35 points, or 0.17%, at 83,454.28, after falling to a day’s low of 82,925.35. The Nifty was up 6.05 points, or 0.02%, at 25,648.85, recovering from its day’s low of 25,491.90.

The quick reversal reinforced how policy clarity can reduce near-term uncertainty, even when global cues remain weak.

Recent closes show choppy but two-way trade

Other referenced sessions pointed to a market that has been moving in narrow ranges around policy and global headlines. In one close, the Sensex gained 158.51 points, or 0.19%, to finish at 85,265.32, while the Nifty50 added 47.75 points, or 0.18%, to end at 26,033.75. Another close showed a marginal dip, with the Sensex ending at 85,118.63 (down over 19 points) and the Nifty at 25,985.10 (down 47 points). In that update, Nifty IT was up 0.76%, while the Nifty Midcap 100 fell 0.98%, and Nifty Midsmall Financial Services declined 1.58%.

The same sequence also noted that benchmark indices had extended losses on Tuesday amid heavy selling in major banking stocks and Reliance Industries, alongside continued foreign fund outflows. The Sensex fell 503.63 points, or 0.59%, to 85,138.27, while the Nifty slipped 143.55 points, or 0.55%, to 26,032.20.

Key levels and moves mentioned

Market impact: what the data says

The data points across these updates show three clear drivers of near-term price action. First, policy uncertainty around the RBI decision kept traders cautious, contributing to selling pressure in risk-sensitive pockets and creating sharp intraday swings. Second, sector rotation was pronounced: banks were repeatedly cited as leading rebounds, while IT remained under pressure, with the IT index down nearly 7% for the week in one update. Third, volatility indicators eased at key moments, with India VIX down 4% in a session where market breadth was positive, aligning with the observed recovery from the lows.

At the stock level, the drag from large IT names such as Infosys, TCS, Tech Mahindra and HCL Technologies was specifically mentioned, while support came from Reliance Industries and select cyclical sectors like autos and oil-linked stocks.

Analysis: why the rebound matters

The sharp rebounds from intraday lows, including the Nifty reclaiming 23,700 for a second consecutive day in one report and the Sensex bouncing nearly 1,000 points in another, highlight how quickly sentiment can shift when selling pressure is met with strong buying in index heavyweights. The post-policy bounce after the repo rate was kept unchanged at 5.25% further shows the market’s preference for clarity, especially when global cues are weak.

The persistent underperformance in IT, alongside stronger action in banks and midcaps at different points, suggests investors were not exiting equities broadly but rebalancing exposure based on sector-specific risks and global growth signals. That said, the deep cuts in a session where the Sensex fell more than 500 points and the Nifty lost more than 130 points underline that headline risk can still dominate in the short term.

Conclusion

Indian equities remained volatile around global uncertainty and the RBI policy event, but repeated recoveries from intraday lows showed selective buying support in large caps and banks. With the RBI MPC decision communicated and the repo rate held at 5.25% in the reported update, the next market focus will remain on follow-through in sector leadership, especially banking strength versus continued pressure in IT.