Sensex rebounds 756 pts from day's low: 4 reasons for market recovery today

Stock Market Today: Indian benchmark indices, the Sensex and Nifty, staged a recovery on Thursday, December 11, 2025, after falling in early trade. The Sensex jumped 756 points or 0.88 per cent from the day’s low at 84,150.19 to intraday high of 84,906.93, and Nifty50 advanced 229.55 points or 0.9 per cent from day’s low at 25,693.25 to intraday high of 25,922.80.   The BSE Sensex closed at 84,818.13 levels, up by 426.86 points or 0.51 per cent, and the NSE Nifty50 rose 140.55 points or 0.55 per cent to 25,898.55 levels. 

 

Tata Steel, Eternal, Kotak Mahindra Bank, Ultratech Cement, and Maruti Suzuki were the top gainers on Sensex. Asian Paints, Bharti Airtel, Bajaj Finance, Axis Bank and Power Grid were the top laggards. 

 

 

Broader market indices also saw buying, BSE MidCap rose 0.79 per cent, and BSE SmallCap 0.51 per cent.  Baring Nifty Media, and Oil & Gas, all sectoral indices closed in the green, with Nifty Auto and Metal up over 1 per cent each.  CATCH STOCK MARKET UPDATES TODAY LIVE

Here are key reasons why Sensex and Nifty staged a recovery

India-US trade deal to finalise soon

Chief Economic Advisor V Anantha Nageswaran stated on Thursday that India and the US have resolved "most of their pending differences" on trade, with a formal agreement potentially ready by March 2026. Speaking to Bloomberg TV, Nageswaran also affirmed India's strong growth prospects for FY27 and described the rupee as "undervalued relative to fundamentals."

 

His remarks come against the backdrop of ongoing talks between New Delhi and Washington to lower trade barriers, with US officials recently indicating that India has put forward some of its most progressive trade proposals yet. READ MORE

AMFI data:

The Association of Mutual Funds in India (AMFI) reported that net equity inflows for November 2025 stood at ₹29,911.05 crore, a significant increase from ₹24,690 crore in October 2025. Positive equity flows also propelled the industry's asset base, with total assets under management (AUM) climbing to ₹80.80 trillion, up from ₹79.87 trillion in October. 

 

“Equity inflows have picked up slightly in the month of November, aided by a steady inflows in diversified categories such as flexi-cap, which has seen steady flows for the second consecutive month. This is a constructive trend, especially because the surge in flows earlier in the year was driven largely by NFO activity and recency bias. With one-year returns across equity categories moderating, inflows now appear more balanced and less sentiment-driven,” said Suranjana Borthakur, head of distribution & strategic alliances, Mirae Asset Investment Managers (India). 

Bargain buying and short covering:

Market experts believe the bounce-back is largely due to bargain buying. G Chokkalingam, Founder of Equinomics Research, noted that investors are buying at lower levels after many stocks were "hammered" in the preceding two weeks.

 

Kranthi Bathini, Director - Equity Strategy at WealthMills Securities, added, "Markets have taken support around the 25,800–25,850 range. The Federal Reserve’s rate cut decision had been an overhang over the last few days, but we are now seeing some bottom fishing in the market along with short covering."  ALSO READ | Crypto fails to cheer Fed rate cut; BTC dips below $93k, ETH slips to $3.2k

Federal Reserve's policy decision

Analysts believe the US Fed’s rate cut decision by 25 basis points (bps) was in line with market expectations and could help FII inflows. 

 

"For India, Federal Reserve cutting rate generally works in favour — a softer dollar reduces pressure on the rupee, and foreign investors tend to take a more positive view of emerging markets. That usually helps equities hold their ground,” said Ravi Singh, chief research officer, Master Capital Services. 

 

The Federal Reserve reduced its key interest rate by a quarter-point for the third consecutive time on Wednesday but indicated a potential pause in further cuts in the coming months. Chair Jerome Powell signalled that the Fed would likely hold off on additional rate cuts while evaluating the economy's health. Quarterly economic projections from Fed officials suggest only one rate cut next year.