Sensex rebounds from day's low, Nifty reclaims 24,100 as GDP growth, value buying lift sentiment

On Tuesday the Indian benchmark indices quickly made up for their early losses with the Sensex rising by nearly 400 points from its intraday low and the Nifty regaining the 24,100 level. The rise was due to economic growth figures that were stronger than expected, increased buying at lower price levels and a stronger rupee.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

At 11:25 a.m., the BSE Sensex was up 233.72 points, or 0.3%, at 77,190.99, while the NSE Nifty gained 42.25 points, or 0.18%, to trade at 24,122.65, according to market data cited by Moneycontrol. Earlier in the day, the Sensex had fallen 193.01 points to 76,764.26 and the Nifty had slipped 70.9 points to 24,009.50.

FMCG, automobile, information technology and Meta-linked stocks were among the top gainers during the recovery.

GDP Data Boosts Confidence

Investor sentiment improved after India reported stronger-than-expected economic growth for the April-June quarter.

Moneycontrol cited data showing that India's real gross domestic product (GDP) increased by 7.8% in the first quarter of FY27. This figure was higher than the Reserve Bank of India's forecast of 7% and went beyond what the market had expected.

The data reduced worries that global uncertainties, such as geopolitical tensions and their effect on international markets, would have a negative impact on domestic economic activity, and the robust growth figures strengthened confidence in the resilience of the Indian economy as well as helped to support the equities.

Buying Emerges At Lower Levels

The market also found support from value buying after the initial decline.

Investors accumulated stocks after recent weakness in benchmark indices. In the previous trading session, the Sensex had closed 307.24 points lower at 76,957.27, while the Nifty had shed 95.25 points to end at 24,080.40, according to Moneycontrol.

The pullback encouraged investors to enter select stocks at lower valuations, helping both indices erase losses and move into positive territory by late morning.

Rupee Strength Adds Support

The Indian rupee strengthened against the U.S. dollar, adding to positive market sentiment.

The currency rose 26 paise to ₹94.96 per U.S. dollar in the interbank foreign exchange market after opening at ₹95.06, according to Moneycontrol.

The report said the rupee's gains were supported by robust domestic growth, contained fiscal slippage and portfolio-related inflows. A stronger currency often improves confidence in domestic assets and helped support the broader market recovery.

Despite weak opening trades, the combination of strong economic data, bargain buying and currency strength helped domestic equities return to the green during the session.