After a week of decline, the stock market saw a strong recovery in some of its most favored stocks. Green shoots returned as key stocks rebounded, bringing relief to investors. The sudden rise has sparked interest in understanding the major factors behind this turnaround.

Why Did the Market Favorites Bounce Back?

Several key reasons contributed to the resurgence of these stocks:

1. Positive Global Cues – Improved global market conditions and stability in major economies played a role in boosting investor confidence.
2. Institutional Buying – Large-scale buying by Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) provided strong support.
3. Sector-Specific Growth – Certain industries, such as banking, IT, and energy, witnessed renewed interest due to strong earnings expectations and favorable policies.
4. Technical Rebound – After seven days of continuous decline, stocks hit key support levels, prompting traders to enter at lower valuations.
5. Improved Market Sentiment – The broader market sentiment shifted positively as concerns over inflation, interest rates, or geopolitical issues eased.

Which Stocks Benefited the Most?

• Leading stocks in the banking and IT sectors saw a strong recovery.
• Mid-cap and small-cap stocks that had faced heavy selling pressure rebounded sharply.
• Sectors linked to domestic demand, such as FMCG and auto, also experienced renewed buying interest.

What’s Next for Investors?

• While the recovery is a positive sign, investors should track global and domestic trends for sustainability.
• Profit booking may occur after sharp gains, so a cautious approach is advised.
• Monitoring institutional investor activity can provide insights into the next market direction.