Sensex Surges 250 Points from Day's Low: 5 Key Factors Driving Market Reversal
The benchmark equity indices, Sensex and Nifty, recouped early losses on Friday, supported by strong buying in metal shares, easing crude prices, and positive global trends.
SensexNiftyMetal SharesCrude PricesGlobal MarketsReal EstateOct 03, 2025
Sensex, which had slipped 299.17 points to 80,684.14 in early trade, recovered nearly 324 points to quote at 80,972.27 around 12 p.m. The Nifty also regained the key 24,800 level, rising to 24,823.70 after falling 76.75 points to 24,759.55 in opening deals.
Tata Steel, Hindalco Industries, Kotak Mahindra Bank, Axis Bank, and JSW Steel were among the key gainers, rising up to 4 percent.
Following are the key factors driving the recovery:
1) Buying in Metal Stocks : Tata Steel gained nearly 3 percent and was the top performer on the Nifty 50 index. Investor interest in the sector rose after reports that the European Union may cut steel import quotas by half and impose a 50 percent duty on volumes above those levels. Brokerages said the impact would be limited for Tata Steel and SAIL, which have less than 8 percent share in exports, while Tata Steel’s Netherlands operations, contributing a quarter of its revenue, could benefit. Gains in metal counters lifted overall market sentiment, reported Informist.
2) Capital Spending Push : Finance Minister Nirmala Sitharaman reiterated the government’s commitment to raise capital expenditure to support growth. The economy grew 7.8 percent in the April-June quarter, the fastest pace in five quarters. Higher spending expectations aided infrastructure and capital goods stocks, providing support to the market.
3) Crude Oil Decline : Brent crude prices fell for the third straight session to a 16-week low as concerns over a potential US government shutdown and expectations of higher OPEC+ supply weighed on the market. Lower crude prices ease concerns on India’s import bill and inflation, which is positive for domestic equities.
4) Global Cues : Asian equities traded mixed, with Japan’s Nikkei and South Korea’s Kospi advancing sharply, while Hong Kong’s Hang Seng index was lower. On Wall Street, benchmark indices closed at record highs on Thursday, supported by technology shares and expectations of further US rate cuts. Strong global market trends improved risk appetite for Indian equities.
5) Value Buying : After an initial eight-day losing streak, investors engaged in value buying, helping the indices recover from intraday lows. Markets also settled higher on Wednesday.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Frequently Asked Questions
What caused the Sensex and Nifty to recover from early losses?
The recovery was driven by strong buying in metal shares, easing crude prices, and positive global market trends.
Which companies saw significant gains?
Tata Steel, Hindalco Industries, Kotak Mahindra Bank, Axis Bank, and JSW Steel were among the key gainers, rising up to 4 percent.
How did the European Union's decision impact the steel sector?
Reports suggest the European Union may cut steel import quotas by half and impose a 50 percent duty on volumes above those levels, which could benefit Tata Steel’s Netherlands operations.
What role did crude oil prices play in the market recovery?
The decline in Brent crude prices for the third straight session to a 16-week low eased concerns on India’s import bill and inflation, positively impacting domestic equities.
How did global markets influence the Indian equity indices?
Asian equities traded mixed, and Wall Street benchmark indices closed at record highs, which improved risk appetite for Indian equities.
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