Sensex rises 200 pts from day’s low, Nifty near 23,300: Key reasons behind markets paring losses

Reports coming in for today mention that Key market indices The two key benchmark indices pared losses on September 11 after a gap-down opening due to various reasons, including value buying.

At 10:26 am, the Sensex was down 532.23 points or 0.71% at 74,370.36, and the Nifty was down 181.05 points or 0.77% at 23,296.75. Around 1,066 shares advanced, 2,499 shares declined, and 150 shares were unchanged.

Key reasons behind markets paring losses

1) Value buying

Value buying emerged from softer marks as Sensex rose 200 points from day's low while Nifty reclaimed the psychologically important 23,250-mark. Buying in IT shares led to the markets paring losses.

2) Wall Street futures in green

Wall Street futures were in green on September 11 after US stocks ended softer on Thursday, marking a fourth consecutive session of declines, as oil price marks extended their sharp ascent.

The Dow Jones Industrial Average declined 316.56 points, or 0.6%, to 52,064.10. The benchmark S&P 500 sank 44.66 points, or 0.58%, to 7,591.70, while the tech-heavy Nasdaq Composite Index shed 171.62 points, or 0.65%, to 26,081.73.

Nine of the 11 primary S&P 500 sectors closed in the red. Materials and utilities paced the declines, dropping 1.48% and 1%, respectively. Bucking the downward trend, communication services and consumer staples managed modest upside, rising 0.25% and 0.24%, respectively.

Energy markets rallied aggressively after US President Donald Trump indicated on Wednesday that elevated fuel costs could persist through the upcoming midterm elections. 3) Technical reason

Market watchers stated Nifty has to trade below 23,200 for further softness in the markets.