Indian markets staged a notable rebound in today’s trading session, January 14, after witnessing four consecutive days of selling pressure, which had pushed both frontline indices to a seven-month low in the previous trading session.

The Nifty 50 ended the session with a gain of 0.35% at 23,167, while the Sensex closed at 76,500 marking a 0.22% increase from the previous close. Mid-cap and small-cap stocks, which had been under bearish pressure in recent sessions, also managed to end higher.

The Nifty Smallcap 100 index rose by 1.97% to 17,240, and the Nifty Midcap 100 index concluded the day with a gain of 2.33%, closing at 53,609 points. 

Despite ending the session in the green, the front-line indices gave up their early gains towards the end. In line with the frontline indices, the broader market also came off its highs during the session but managed to outperform. 

Today’s rebound in markets was largely driven by gains in banking, auto, and metal stocks. Additionally, Adani Group stocks ended higher, buoyed by speculative buzz around potential fundraising plans.

Factors such as a strong recovery in the Indian rupee, a decline in crude oil prices, domestic inflation hitting a four-month low, and value buying at lower levels, along with positive global cues, particularly from China, collectively helped the markets end in positive territory.

Whether this recovery continues in the upcoming trading sessions will depend on U.S. inflation figures, with the Consumer Price Index (CPI) report scheduled for release on Wednesday. 

Market participants will also be watching the jobless claims data on Thursday, which provide further clarity on the US economy after Friday’s blowout nonfarm payroll figures.