Image Source : News18
Indian equity markets witnessed a robust rally on Tuesday, with the benchmark BSE Sensex rising sharply by over 300 points and the NSE Nifty 50 closing firmly above the 24,850 mark. The sustained buying momentum came amid positive global cues, expectations of a US Federal Reserve rate cut, and strong sectoral performances, especially from IT and pharma stocks. The market’s upbeat mood signals investor confidence returning after recent oscillations, while participants closely watch upcoming macroeconomic data.
Market Momentum And Opening Gains
The Sensex started the day on a positive note and maintained its upward trajectory throughout the session, closing 314 points higher at approximately 81,101. The Nifty 50 followed suit, gaining around 95 points to settle near 24,869. This marked the fifth consecutive session of gains for these key indices, highlighting sustained buying appetite. The midcap and smallcap indices showed modest gains but underperformed slightly compared to the blue-chip stocks.
Key Highlights Reflecting Market Strength
The IT sector emerged as the star performer, with the Nifty IT index surging nearly 2.8 percent. Heavyweights like Infosys, Wipro, and Tech Mahindra recorded significant gains, fueled by Infosys’ announcement of a potential share buyback at its upcoming board meeting.
Infosys led the Sensex gainers, rising by around 5 percent and contributing nearly 217 points to the overall Sensex rally. Tech Mahindra and HCL Technologies also registered solid gains in the range of 1 to 3 percent.
Pharma and FMCG sectors gained moderately, supported by steady demand outlooks and reassuring earnings trends. Dr Reddy’s Laboratories was among the notable gainers in pharma stocks.
Auto sector stocks faced some profit booking pressure after recent GST rationalization-driven rallies, causing a slight drag on the broader index.
Oil and Gas as well as Realty indices ended marginally lower by around 0.3 percent each, reflecting mixed sentiment in these spaces.
Broader Market Activity
Out of over 3,100 stocks traded on Tuesday, approximately 1,893 advanced while around 2,028 declined and 160 remained unchanged, suggesting a relatively balanced market breadth. Over 100 stocks hit fresh 52-week highs, underscoring the positive sentiment, while some counters touched new lows amid sector-specific profit taking. Midcap and smallcap indices gained around 0.2 percent each, though smallcaps ended marginally lower by the session’s close.
Currency And Global Cues Impact
The Indian rupee strengthened, closing near 88.11 against the US dollar, aided by receding expectations of aggressive Fed tightening and ongoing US-India trade dialogues. Global markets were buoyed as the Nasdaq hit fresh records, adding to positive risk appetite. Investors anticipate a potential Fed rate cut later this month, which is providing additional tailwinds to emerging markets like India.
What Analysts Are Saying
Market experts point to the continuing influence of domestic policy reforms such as the GST, which has benefited cyclical sectors including automobiles. Earnings season optimism and global rate cut prospects are supporting markets, although inflation and unemployment concerns in the US will keep investors cautious. The current market mood reflects a blend of cautious optimism, supported by robust IT earnings expectations and resilient domestic demand.
Noteworthy Gainers And Losers
Among the top gainers, besides Infosys and Tech Mahindra, companies like Adani Ports, Ramco Systems, and Quick Heal Technologies showed strong momentum. On the flip side, stocks like Trent, Eternal, Ultratech Cement, and Jio Financial saw declines between 1 to 2 percent, reflecting selective profit booking.
Looking Forward For Investors
With key inflation data from India and the US awaited, markets are expected to remain sensitive to macroeconomic releases in the coming days. The momentum built around IT and pharma sectors could sustain broader market strength if earnings continue to show resilience. Conversely, cautiousness remains over global trade developments and interest rate trajectories.
This strong market rally despite mixed global signals underscores underlying confidence in India’s economic fundamentals and growth prospects. Investors are advised to watch sector-specific triggers closely, as the ongoing earnings season will be key in shaping near-term trends.
Sources: Times of India, Moneycontrol, Business Standard, CNBC TV18, The Economic Times, Business Today
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