Sensex, Nifty Recover After Gap Down Opening - Top Developments

BSE Sensex and Nifty, the Indian blue-chip indices, opened at a sharp low on Monday, January 13, 2025.

At 9:21 am, the BSE Sensex was down by 654 points, or 0.85 per cent, at 76,714, while the Nifty50 dropped 193 points, or 0.82 per cent, to 23,238.

Why Was The Market At A Low?

After a stronger-than-expected U.S. jobs report reduced expectations for early interest rate cuts by the Federal Reserve. Worries about slowing earnings also impacted market sentiment.

Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,254.68 crore on Friday, according to exchange data. Foreign investors have withdrawn Rs 22,194 crore from Indian equities so far this month.

"Market will continue to be under pressure from the many strong headwinds. The blow out jobs data from the US with 2.56 lakh job creation in December against expectations of 1.65 lakh means the rate cut expectations in 2025 is now down to one. With the unemployment in the US down to 4.1 per cent, the economy doesn't need any stimulus. This good economic news is turning out to be bad news for markets which were discounting many rate cuts this year.

"For India, the Brent crude rising to USD 81 is a concern. But the IIP data for November at 5.2 per cent indicates that the economy is recovering from the slowdown in Q2," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, ANI reported.

India's industrial production (IIP) growth accelerated to a six-month high of 5.2 per cent year-on-year in November 2024, riding on the increased festive demand and pick up in manufacturing sector, according to the official data released on Friday.

Global oil benchmark Brent crude jumped 1.62 per cent to USD 81.05 a barrel.

Market Recovery

The Market is gaining traction again. At 10 41 am, BSE stood at 77,069.04, and NSE at 23,288.20.

Market Closed In Red

The stock market closed in the red after the trading session for the previous week, on Friday, January 10, 2025.

The Sensex closed 241.30 points or 0.31 per cent lower at 77,378.91, while the Nifty closed 95 points or 0.4 per cent lower at 23,431.50.