Indian stock markets saw one of their most dramatic intraday reversals in recent weeks. TheSensex, which had fallen more than650 pointsin early trade, recovered sharply and wasup nearly 180 points by 1:38 pm, while theNifty gained about 51 points. From the day’s low, the Sensex rebounded byover 800 points, marking a powerful turnaround in sentiment.

 Selling exhaustion & short covering

After several days of continuous selling, markets enteredoversold territory. When prices failed to fall further in the morning, sellers paused. This triggeredshort covering, as traders rushed to close bearish bets, pushing prices higher.

 Heavyweight stocks led the rebound

The recovery was driven mainly bylarge-cap stocksin banking, IT, and energy. Because these stocks carry heavy weight in the indices, even limited buying in them was enough to lift the Sensex and Nifty into positive territory.

 Relief rally, not a trend change

Despite the strong bounce, experts warn that the broader market risks remain.Global uncertainty, geopolitical tensions, high volatility, and earnings-related cautionare still in play. The rebound is seen more as atechnical relief rallythan a sign of a new bull trend.

 What investors should expect next

Tuesday’s sharp swing shows howfragile market sentimentis right now. Until there is clarity onglobal cues and Q3 earnings, markets are likely to stay volatile. Investors should remain selective, as big intraday moves may continue.

Bottom line:The market bounce offers temporary relief, but stability will depend on earnings results and global developments. Caution and discipline remain key in this high-volatility phase.