18 May 2026 Punjab Khabarnama Bureau : Indian equity markets staged a strong recovery on Monday, with the benchmark Sensex rebounding more than 1,100 points from the day’s low and the Nifty closing above the crucial 23,650 mark. The sharp turnaround came after heavy volatility in early trade triggered by global geopolitical tensions and rising crude oil prices.
The BSE Sensex opened sharply lower amid weak global sentiment and concerns related to escalating tensions involving Iran and the United States. However, strong buying in heavyweight stocks, supportive domestic institutional flows, and bargain hunting at lower levels helped markets erase losses and recover significantly by the closing bell.
According to market experts, one of the biggest reasons behind the recovery was aggressive buying in banking, financial, and information technology stocks after investors viewed the early selloff as an opportunity to accumulate quality shares at attractive valuations.
During morning trade, the Sensex had plunged nearly 900 points while the Nifty slipped below key support levels amid panic selling driven by rising crude oil prices and fears of further geopolitical escalation in the Middle East. However, sentiment improved gradually through the session as investors turned selective buyers.
Analysts said domestic institutional investors played a key role in stabilizing the market. Continuous buying support from mutual funds and insurance companies helped counterbalance weak global cues and reduced panic among retail investors.
Another important factor behind the recovery was the resilience shown by Indian markets despite pressure in several global indices. Traders noted that Indian equities have continued to attract investor confidence due to stable economic growth, strong corporate earnings, and expectations of sustained domestic demand.
Banking stocks emerged as major contributors to the rebound, with several large private and public sector banks recovering sharply from intraday lows. Financial stocks witnessed renewed buying after investors anticipated continued credit growth and healthy balance sheet performance in the sector.
Information technology companies also supported the market recovery as investors shifted toward defensive sectors amid global uncertainty. IT shares gained strength due to expectations that a weaker rupee could improve export earnings for major software companies.
Market experts further stated that easing concerns over immediate disruption in global oil supplies also helped sentiment improve later in the session. Although crude oil prices remained elevated, traders observed that markets stabilized after no major escalation was reported during trading hours.
Short covering by traders also contributed significantly to the late-session rally. Analysts explained that many bearish positions created during the early decline were unwound as markets started recovering, accelerating the upward momentum in benchmark indices.
The Nifty successfully reclaimed the 23,650 level by the end of the session, which technical analysts described as an important psychological and support zone. Holding above this level has improved short-term sentiment and reduced fears of deeper correction in the near term.
Broader markets also participated in the recovery, with several mid-cap and small-cap stocks bouncing back strongly after witnessing heavy pressure earlier in the day. Investors showed renewed interest in sectors linked to infrastructure, capital goods, and consumption themes.
Auto and consumer-related stocks gained after market participants expressed confidence that domestic demand trends remain healthy despite global uncertainties. Realty shares also witnessed selective buying as investors looked for opportunities in beaten-down counters.
Foreign institutional investor activity remained closely watched throughout the day. While foreign flows have shown volatility in recent sessions due to global developments, strong domestic liquidity continued supporting the Indian market.
Experts noted that India’s macroeconomic fundamentals remain relatively strong compared to several global economies. Stable GST collections, improving manufacturing activity, and ongoing infrastructure spending have continued to provide confidence to long-term investors.
Market participants also reacted positively to expectations that central banks globally may avoid aggressive monetary tightening if geopolitical risks begin affecting economic growth. This supported sentiment in rate-sensitive sectors during the second half of trading.
Technical analysts said the recovery indicates that bulls are still active at lower levels and investors remain willing to buy during corrections. However, they cautioned that volatility could remain elevated due to geopolitical developments and fluctuations in crude oil prices.
Global markets continue to closely monitor tensions involving Iran, crude oil movement, and statements from world leaders, as any major escalation could impact risk sentiment and foreign investment flows into emerging markets like India.
Despite the day’s volatility, market strategists believe the strong recovery demonstrates underlying resilience in Indian equities. Many investors interpreted the rebound as a sign that domestic fundamentals continue to support long-term optimism even amid uncertain global conditions.
As trading concluded, the Sensex ended sharply above its intraday low while the Nifty closed firmly above 23,650, reflecting renewed investor confidence and strong buying interest across key sectors.