India stock markets witnessed impressive recovery on Thursday as Sensex moved up 450 points from the lows of the day and Nifty surpassed 24650. The upside was led by PM Modi’s diplomatic trysts, relief from US tariff worries and robust domestic institutional inflows.
Sensex Nifty Market Recovery
On Thursday, India’s benchmark indices staged a remarkable recovery as the Sensex bounced back 450 points from the day’s low while the Nifty was trading above 24,650. The rebound followed steep early falls that had been triggered by the announcement of the US tariff hikes on Indian goods. Besides, investors took heart from Prime Minister Narendra Modi’s foreign policy agenda and the strong inflow of domestic institutional funds.
Market Movement Overview
In the opening session of the day, the Sensex was down 693.54 points (0.85%) at 80,093.52, and the Nifty also declined by 204.75 points (0.82%) to 24,507.20. The day, however, witnesses a comeback by both indices. The Sensex recovers to 80,543.74 and the Nifty moves to over 24,650, gaining almost 150 points.
Gains were led by Hero MotoCorp, Adani Enterprises, Titan Company, Asian Paints, and Adani Ports and Special Economic Zone, all of which intraday 2% ups.
Also Read: What Are Domestic Institutional Investors (DIIs) and Their Role in the Indian Stock Market?
Three Key Drivers Behind Sensex Nifty Market Recovery
1. PM Modi’s Japan and China Visit
Next week on August 31 and September 1, Prime Minister Narendra Modi will be in China to attend the Shanghai Cooperation Organisations 25th Council of Heads of State in Tianjin. After that, he will visit Japan. Market experts figure these diplomatic engagements will support India in branching out its trade partnerships and softening the blow of the tariffs imposed by the US. The upbeat mood about Modi’s trip was one of the biggest boosters of the rally on Thursday.
2. Tariffs Seen as Temporary
Recently, the United States increased the tariff on imports from India by an additional 25%, thereby doubling the total duty to 50%. Although the freight weighed heavily on the stock market initially, the investors’ mood picked up after US Treasury Secretary Scott Bessent’s statement that the relationship between India and the US is “very complicated” but that “in the end, we will come together.” Dr. V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, sees markets as having incorporated the 50 per cent tariff hike as a short-term move from which a resolution is imminent and thus providing room for Indian equities to breathe.
3. Strong DII Inflows
FIIs data from last week reveals that they offloaded Indian equities valued at Rs. 6,516.49 crores. During that period, DIIs had taken over the market and invested Rs. 7,060.37 crores worth of purchase. In the meantime, Domestic Institutional Investors (DIIs) had turned buyers to the tune of Rs 7,060.37 crore. The analysts point out that the formidable DII inflows are counterbalancing the foreign outflows, thus acting as a market stabilizer.
Outlook and Investor Sentiment
Though worries related to tariffs linger, the upside is a signal that market players are giving weight to India’s local fortitude which comprises the strong participation of DII and the government-backed diplomatic outreach. The experts maintain that the Indian market will be toughen even against external shocks provided that DII inflows keep going.
FAQ’s
Q1: Why did the Sensex Nifty Market Recovery after early losses?
The Sensex Nifty Market Recovery was driven by optimism around PM Modi’s diplomatic visit, the belief that US tariffs are temporary, and strong DII buying.
Q2: What role did domestic investors play in the rebound?
DIIs purchased stocks worth Rs 7,060.37 crore, offsetting FII selling and supporting market sentiment.
Q3: Which stocks led the Sensex Nifty Market Recovery?
Up to 2% intraday, Hero MotoCorp, Adani Enterprises, Titan Company, Asian Paints, and Adani Ports were the highest risers.
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