The Indian equity markets experienced a rebound on November 19, with the Sensex surging by 1,000 points and the Nifty climbing above 23,750. This increase was driven by value-buying at lower levels and strong interest in blue-chip stocks.

The Nifty PSE index, which tracks 20 state-run companies, also saw a significant increase of 2.11 percent, with all constituents trading in the green. The market reversal was influenced by the Nifty"s relative strength index falling below 30, indicating oversold conditions that typically lead to short-term rebounds. However, analysts remain cautious about the near-term outlook due to high valuations, foreign outflows, and moderating earnings.

In terms of trading activity, Foreign Institutional Investors (FIIs) sold shares worth Rs 1,403.40 crore, while Domestic Institutional Investors (DIIs) made net purchases amounting to Rs 2,330.56 crore. This highlights a shift in market dynamics, with robust domestic support despite ongoing foreign outflows.