Sensex crashes 500 points, then pulls off stunning comeback within an hour

Markets Open Deep in the Red

The BSE Sensex plunged more than 500 points in early trade, while the NSE Nifty 50 fell nearly 0.7 percent to touch an intraday low of 23,247 points.

However, buying emerged at lower levels, helping both indices pare losses rapidly.

Sharp Recovery Within an Hour

The Sensex recovered strongly to trade over 100 points higher within an hour of the opening bell.

The Nifty 50 too erased its losses and entered the green zone, reflecting improved investor sentiment after the initial sell-off.

Banking and IT Stocks Weigh on Market

The early decline was largely driven by heavyweight stocks, with HDFC Bank contributing the most to the Sensex's fall at 22.16 points. Infosys followed with an 11.18-point drag, while Reliance Industries (RIL) weighed down the index by 10.08 points.

The Nifty IT index dropped nearly 1 percent, emerging as one of the biggest sectoral laggards and exerting pressure on the broader market.

Select Stocks Buck the Trend

Despite the weak opening, several stocks traded in positive territory. Eternal gained around 2 percent, while Adani Ports and ONGC also registered gains, helping support the market's recovery.

Indian equities have witnessed heightened volatility in recent sessions amid concerns over global economic uncertainty, fluctuating crude oil prices, foreign institutional investor (FII) activity and expectations surrounding major central bank policy decisions.

Investors are also closely monitoring domestic macroeconomic indicators and corporate earnings for fresh market cues.