Sensex & Nifty Snap 3-Day Losing Streak: What's Fuelling the Rebound?

The Indian stock market broke its three-day losing spell with a decisive comeback on Tuesday, July 29, 2025. After a period of sustained selling pressure, bulls took charge, pushing benchmark indices firmly into the green by the closing bell.

The BSE Sensex closed at 81,337.95, a significant jump of 446.93 points or 0.55%. Similarly, the NSE Nifty 50 ended the day at 24,821.10, up by 140.20 points or 0.57%. This recovery brought a much-needed sigh of relief to investors who had seen the market decline sharply in the previous sessions.

The Day’s Story: A Rebound Amidst Headwinds

The trading session began on a cautious and relatively flat note, with the Nifty hovering below the 24,700 mark. The market was grappling with several headwinds, including persistent selling by Foreign Institutional Investors (FIIs), who sold shares worth ₹6,082.47 crore on Monday, and mixed signals from the ongoing Q1 corporate earnings season.

However, as the day progressed, strong buying interest emerged. The market displayed a robust recovery from its morning lows, with broad-based participation from various sectors. This suggests that many investors viewed the recent correction as a prime opportunity for value buying in blue-chip stocks.

The rally wasn’t just confined to the headline indices. The broader market also participated enthusiastically, with the BSE Midcap and Smallcap indices closing with gains of 0.81% and 1.03% respectively. The advance-decline ratio improved significantly, indicating healthier market breadth compared to previous days.

Who Were the Stars of the Show?

The recovery was led by a strong performance across the board, with all sectoral indices ending in the green. Cyclical and interest-rate-sensitive sectors were particularly strong. The Nifty Realty index was a top gainer, snapping a five-day losing streak. It was joined by strong gains in Nifty Metal, Nifty Pharma, and Nifty Oil & Gas.

Several individual stocks made headlines:

• Top Gainers: Blue-chip stocks like Reliance Industries, Larsen & Toubro, Asian Paints, and Tata Motors were among the top contributors to the Sensex’s gains.
• Earnings Boost: Shares of Waaree Energies rallied after posting a massive 89% jump in its first-quarter profit, driven by strong demand for clean energy.
• The Laggards: On the flip side, Axis Bank, IT major TCS, Titan, and ITC were among the top losers on the benchmark indices.

What This Means for Retail Investors

Tuesday’s rebound is a classic example of the market’s “buy on dips” character. While the recent fall was sharp, strong domestic fundamentals and robust buying support from Domestic Institutional Investors (DIIs) provided a cushion. DIIs have been effectively absorbing the selling pressure from FIIs.

However, it’s important to remain cautious. The market is still navigating a tricky earnings season with varied results. As noted by market experts, headwinds such as uncertainties around a potential India-US trade deal and persistent foreign outflows remain key concerns.

For retail investors, this means that while the recovery is positive, volatility is likely to persist. Sticking to quality stocks with strong fundamentals and avoiding speculative bets is a prudent strategy in the current environment.

What to Watch Next

As we move forward, keep an eye on these key developments:

• Q1 Earnings: The earnings season is in full swing. Results from market heavyweights will be crucial in setting the market’s direction.
• FII/DII Activity: The flow of institutional money remains a critical indicator. A reduction in FII selling would be a major positive trigger for the market.
• Global Cues: Investors will be closely watching the US Federal Reserve’s policy meeting for guidance on interest rates, which can significantly impact global liquidity and market sentiment.
• Technical Levels: For the Nifty 50, the 24,600-24,500 zone has emerged as a key support area. On the upside, the index will need to decisively cross its next resistance levels to sustain its upward momentum.

Tuesday’s session was a clear win for the bulls, but the tug-of-war with the bears is far from over. Stay informed, stay disciplined, and invest wisely.

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Disclaimer: This article is for informational purposes only and should not be considered investment advice. Please conduct your own research before making any investment decisions.