Sensex rises 400 pts from day's low, Nifty reclaims 22,700: Key reasons behind sharp market reversal

Key reasons behind markets paring losses Value buying emerged from lower levels on October 22 after a gap-down opening of up to 1%. Sensex rose 600 points from day's low while Nifty reclaimed 22,750-mark. Nifty Midcap 100 index rose over 750 points from day's low. While ICICI Bank and Axis Bank oscillated between gains and losses, Eternal was in the green, up more than 1%. Eternal released its September quarter earnings on Wednesday, and brokerages remain constructive on the company's growth ahead, particularly in its Blinkit business.

In the Nifty 50, Nestle India and Power Grid Corp. were the worst-hit, down 2.6% and 2.4%, respectively. Among some key buzzers was Indian Hotels Co. The Taj Hotels operator raised its consolidated sales guidance to 15–17% from 12–14% for 2026-27 (Apr-Mar), excluding the synergies from the merger with Oriental Hotels. Indian Hotels gained around 2%, making it among the best performers in the Nifty 200 and Nifty 500 indices.

Meanwhile, shares of International Gemological Institute hit the 10% upper circuit at Rs 353.20 after its consolidated net profit for the September quarter grew 43% on year. Among sectoral indices, Nifty Metal and Nifty Auto were the main laggards, down about 2% each. All constituents of both indices traded lower. Nifty IT and Nifty Private Bank fell the least, shedding 0.5% each. Foreign investors bought Indian shares worth Rs 1,022 crore on Wednesday, according to provisional data.

This would be their second session of buying in three. DIIs also maintained their buying stance, recording net purchases of around ₹1,614 crore. Buying support from both foreign and domestic institutions provided a positive counterbalance to the recent weakness in the broader market. Nifty needs to trade below 22,560 for further bearishness to emerge in the market, said analysts. "Nifty has support at 22,500-22,400 levels being the 80% retracement of the last two weeks pullback 22180-23,175.

A breach below 22,400 will negate the last two weeks pullback and open downside towards recent low of 22,180. "On the higher side key level to watch is Monday's high of 23,175, only a move above the same will signal pullback towards 23,300 and 23,500 levels in the coming weeks," said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.