Despite Sensex s 740-point rally, six BSE500 stocks hit 52-week lows, signaling potential buying opportunities or underlying weaknesses. Investors assess these price dips for market sentiment and stock valuation insights.

Veteran investor Shankar Sharma sees the current bear market as locally driven, unlike past global-led downturns. Analysts cite FII outflows, technical factors, and attractive valuations. Nifty rebounded, forming a bullish pattern, with key resistance at 22,500. Experts advise focusing on fundamentally strong stocks amid ongoing volatility.

Sebi introduced a six-step framework late last year, implementing measures such as increasing options contract sizes and limiting weekly expiries to one per exchange. These rules followed a study revealing that retail traders lost nearly Rs 1.8 lakh crore over the past three years by gambling their savings in volatile trades.

The OPEC+ decision to reintroduce 2.2 million barrels per day (mbpd) of oil over the next two years was "cautiously expected," yet still notable, as it represents 38% of the 5.9 mbpd in cumulative cuts made since 2022, according to the brokerage.

The Indian rupee rose on Wednesday as a broadly weaker U.S. dollar spurred gains in most Asian currencies, with investors fretting over a slowdown in the U.S. and how trade tariffs may impact the world s largest economy.

The auto sector’s valuation premium over Nifty has declined from 37% to 20%, as auto stocks fell 27% compared to Nifty’s 16% drop since September 2024. Weak Q3 earnings and Tesla’s India entry contributed to bearish sentiment, analysts say.

European shares bounced back on Wednesday after their worst day in more than six months as German leaders agreed to loosen the country s so-called debt brake.

Market volatility is due to low trading volumes, with potential bottoming out expected by April. Positive shifts in domestic consumption and FPI flow reversals suggest opportunities in the banking and financial sectors. Transition focuses on high-growth small and midcap stocks over largecap defensive names.

Investors can offset stock market losses against capital gains through tax loss harvesting, reducing tax liability amid higher capital gains taxes. The July 2024 budget raised STCG tax from 15% to 20% for shares held under 12 months, while LTCG tax increased to 12.5% for income above Rs 1.25 lakh on shares held for over 12 months.Caption: LTCG has been increased to 12.5% on income exceeding Rs 1.25 lakh, with shares required to be held for 12 months or more.