Indian Equities Recover Amid Sectoral Divergence; Auto Stocks Outperform on Festive Demand

Indian benchmark indices clawed back from early losses in a volatile session, with the Sensex settling at 82,230.37 after plunging 530 points intraday. The Nifty 50 similarly rebounded to 25,219.00, shrugging off geopolitical tensions that initially rattled global risk assets.

Automobile stocks emerged as clear outperformers, buoyed by festive-season demand. The sector index ROSE 0.83%, with Maruti Suzuki and Eicher Motors scaling 52-week highs. This rally offset pressure from IT stocks, which faltered on renewed H-1B visa concerns—a reminder of how regulatory shifts can abruptly alter sector trajectories.

Market breadth remained weak with 1,725 decliners outpacing 1,179 advancers on the NSE. The small and mid-cap segments underperformed, dropping 0.49% and 0.32% respectively. Banking and metals showed resilience, while FMCG and realty joined IT in the red.