Sensex, Nifty Recover Early Losses as SBI and Reliance Shares Rise

The Sensex and Nifty 50 recovered most of their initial losses during volatile trading on Monday, supported by buying in State Bank of India (SBI) and Reliance Industries. Fresh foreign institutional investor (FII) buying also helped improve market sentiment, although declines in Axis Bank and several other heavyweight stocks limited the recovery.

The rebound followed a weak opening, when both benchmark indices came under pressure. Banking stocks, foreign investment flows, movements in crude oil prices and global market trends remained important factors for investors assessing the direction of Indian equities.

According to the market figures provided for this report, the BSE Sensex initially fell 470.50 points to 74,318, while the NSE Nifty 50 declined 147.10 points to 22,999.05.

The indices subsequently recovered much of that ground. The Sensex was quoted at 74,682.78, down 46.49 points, while the Nifty traded at 23,131.60, lower by 14.55 points.

The recovery indicated that buying interest in selected heavyweight shares helped cushion the broader market against the initial selling pressure.

Sensex and Nifty Today: Key Market Levels

The session was marked by a sharp early decline followed by a substantial recovery. Both benchmarks remained marginally lower at the reported later readings, suggesting that the rebound had not completely erased the day’s losses.

The Sensex represents 30 major companies listed on the BSE, while the Nifty 50 tracks 50 leading companies listed on the NSE. Their movements provide a broad indication of market sentiment, although individual stocks and sectors can perform differently from the headline indices.

For investors, the distinction between an intraday recovery and a sustained market uptrend is important. A recovery during one session does not, by itself, establish that the market has entered a lasting upward trend.

SBI and Reliance Industries Support the Recovery

Shares of State Bank of India and Reliance Industries were among the major gainers reported during the session, helping the benchmark indices recover from their morning lows.

SBI is one of India’s largest public sector banks, while Reliance Industries has significant exposure to businesses spanning energy, retail, telecommunications and other sectors. Movements in these companies can influence benchmark performance because of their substantial representation in the Indian equity market.

Other reported gainers included UltraTech Cement, Tata Consultancy Services, Adani Ports and HCL Technologies.

The advance in these stocks helped offset weakness elsewhere in the market. However, the performance of individual companies should be assessed separately from the overall direction of the indices.

Axis Bank Falls Despite Higher Quarterly Profit

Axis Bank was among the notable laggards, with its shares falling more than 4% despite reporting a substantial increase in consolidated net profit for the second quarter of FY2026-27.

According to the supplied earnings figures, the private sector lender reported consolidated net profit of ₹7,704.67 crore, representing a 39.4% increase. The reported improvement was supported by higher core income and better asset quality.

The negative share-price reaction highlights an important feature of equity markets: a rise in reported profit does not automatically lead to gains in a company’s stock.

Investors may also evaluate earnings against market expectations, the quality and sustainability of income, margins, provisions, credit costs and management’s outlook. However, the available information does not establish which specific factor drove Axis Bank’s decline during this session.

HDFC Bank, Infosys, Bajaj Finserv, Hindustan Unilever and Trent were also among the reported laggards.

The contrasting performances of banks illustrate why investors should examine company-specific results alongside broader market conditions.

Foreign Investor Buying Offers Support

Foreign institutional investors returned as net buyers on Friday after a period of selling, according to the exchange data cited in the supplied report.

Their reported equity purchases amounted to ₹1,165.92 crore.

Foreign portfolio flows are closely monitored in India because overseas investors can influence liquidity, share prices and the rupee through their investment decisions. Sustained inflows can support market sentiment, while heavy selling may add pressure to equities.

Nevertheless, one session of net buying is not enough to establish a durable reversal in foreign investor behaviour. Investors should monitor subsequent exchange disclosures to determine whether the buying continues.

Domestic institutional investment, corporate earnings, interest-rate expectations and global risk appetite can also influence the direction of the Indian stock market.

Crude Oil Prices and Global Markets Remain in Focus

Brent crude, the international oil benchmark, was reported to be down 1.90% at $107.80 per barrel.

Oil prices matter to Indian equities because India imports a substantial share of its crude oil requirements. Elevated prices can increase import costs and place pressure on inflation, the current account and fuel-sensitive businesses.

A sustained decline in crude prices may ease some of these pressures, although the impact depends on the duration of the move, currency movements and domestic pricing conditions.

Global equity markets presented a mixed picture. South Korea’s Kospi and China’s Shanghai Composite were trading higher in the reported session, while Japan’s Nikkei 225 was lower.

US markets had ended Friday’s session in negative territory. The Nasdaq Composite fell 2.14%, the S&P 500 declined 1.09% and the Dow Jones Industrial Average lost 0.34%.

Weakness in US equities can influence investor sentiment in Asia, particularly when technology shares and expectations about interest rates are under pressure. However, movements in overseas markets do not translate directly into identical moves in Indian indices.

What Investors Should Watch Next

The latest trading session highlights several factors that could influence the near-term direction of Indian equities.

1. Follow-through buying in heavyweight stocks

Investors will want to see whether buying in SBI, Reliance Industries and other large companies continues beyond a single session. Sustained participation from heavyweight stocks can provide greater support to the benchmarks.

2. Developments in bank earnings

Axis Bank’s share-price decline, despite higher reported profit, places attention on the earnings quality and outlook of the banking sector. Investors should compare individual results with official company disclosures and market expectations.

3. Foreign institutional investor flows

Further exchange data will help establish whether foreign investors are returning to Indian equities or whether the latest buying represents a temporary pause in selling.

4. Crude oil and international market movements

Changes in oil prices, US equity performance and Asian trading trends could affect sentiment in the next session. Their influence will depend on how these factors interact with domestic economic and corporate developments.

5. The strength of the market recovery

A stronger assessment of market direction requires more than the closing level of the headline indices. Market breadth, trading volumes, sector participation and subsequent price movements can help determine whether the rebound has broader support.

Market Outlook: Recovery Needs Confirmation

The Sensex and Nifty’s recovery from their early lows demonstrated that buyers were willing to step in despite weakness in several large-cap stocks. Gains in SBI and Reliance Industries, together with the reported return of foreign buying, helped reduce the pressure on the benchmarks.

However, the indices remained below their previous closing levels at the reported readings. Axis Bank’s decline despite stronger quarterly profit also showed that company-specific concerns can outweigh headline earnings growth.

The next trading sessions will provide a clearer indication of whether the rebound can gain momentum or whether selling pressure will return.

For investors, the key is to distinguish short-term market movements from longer-term changes in earnings, valuations and economic conditions. Decisions should be based on verified information, individual financial objectives and risk tolerance rather than a single intraday recovery.

Disclaimer: This article is for informational and educational purposes only and should not be treated as investment advice, a recommendation to buy or sell securities, or a guarantee of future market performance.