India’s equity markets made a spectacular recovery on Monday, bouncing back strongly after early technical lows led by a surge in technology stocks. The benchmark BSE Sensex staged a huge 1,000-point recovery from day’s low after plunging deep into the red during early trade as global bond yields soared and crude oil prices rose. At the same time, the wider NSE Nifty 50 could climb back above the crucial 23,600 psychological level. The initial bloodbath on Dalal Street wiped out trillions in market capitalisation temporarily but heavy institutional buying in index heavyweights like Infosys, TCS and Tech Mahindra fiercely countered the fall. Nifty IT index rallied decisively to reverse the morning panic, while banking and oil sectors continued to be under corrective pressure. As long as the index holds above this critical pivot zone, near term buying hopes will be alive.
