Sensex, Nifty Reverse Early Losses Amid Volatile Trade

New Delhi : Indian benchmark indices Nifty 50 and BSE Sensex staged a strong rebound on April 17, shrugging off early-session losses as heavyweight financial stocks led the recovery. Investors appeared cautiously optimistic amid global volatility and earnings season cues, while key sectors showed resilience.

As of 11:39 a.m., the NSE Nifty 50 index was trading 0.51% higher, while the BSE Sensex also gained in tandem. The broader market sentiment improved primarily due to the performance of the Nifty Financial Services index, which climbed 0.93% to a record high of 25,729.25 before easing slightly to 25,721.00, still up 0.90% for the day.

Major private lenders ICICI Bank Ltd. and HDFC Bank Ltd. were the top contributors to the financial index’s rally. ICICI Bank saw renewed investor interest ahead of its upcoming quarterly results, while HDFC Bank showed strength after analysts gave positive reviews on its recent balance sheet disclosures and retail loan growth.

In addition to banking, selective buying was seen in IT and FMCG counters, which had faced sharp corrections earlier in the week. However, market participants remained watchful ahead of key U.S. Federal Reserve comments and crude oil fluctuations, which continue to impact foreign investor sentiment.

Midcap and smallcap indices traded with modest gains, reflecting a broader market participation in the rally. On the sectoral front, Nifty Bank, Nifty Private Bank, and Nifty Realty indices were also in the green, though metals and pharma showed some intraday weakness.

Meanwhile, foreign institutional investors (FIIs) were seen as net sellers in the previous session, while domestic institutional investors (DIIs) provided support through selective value-buying. Analysts say the current rebound is a mix of short covering and rotational buying ahead of Q4 earnings announcements.

Market experts advise a cautious approach, highlighting that volatility may persist in the near term due to mixed global cues, ongoing tensions in the Middle East, and inflation data due later this week.