Equity markets showed strong gains on Tuesday, as the Sensex surged 1,131.31 points or 1.53 per cent to close at 75,301.26, while the Nifty 50 climbed 325.55 points or 1.45 per cent to end at 22,834.30. The positive momentum was fueled by upbeat global cues and a robust performance from banking and financial stocks.
The rally was supported by optimism surrounding potential ceasefire talks between Russia and Ukraine, as well as economic stimulus measures in China. Banking stocks emerged as the top performers, with the Bank Nifty gaining 960.35 points or 1.99 per cent to close at 49,314.50.
Among the top gainers on the NSE were ICICI Bank, which jumped 3.35 per cent to ₹1,311.5, followed by Larsen & Toubro (3.07 per cent), Shriram Finance (3.00 per cent), Mahindra & Mahindra (2.95 per cent), and Tata Motors (2.69 per cent).
On the flip side, only three stocks in the Nifty 50 ended in the red, with Bajaj Finserv being the top loser, declining 1.34 per cent to ₹1,846.5.
Market breadth was positive, with 2,815 stocks advancing against 1,221 declining on the BSE. The session saw 65 stocks hitting 52-week highs while 294 touched 52-week lows. Additionally, 13 stocks hit the upper circuit while 7 hit the lower circuit.
Commenting on the market performance, Mr. Ram Medury, Founder and CEO of Maxiom Wealth, noted, “Sensex rebounded strongly, driven by positive global cues, heavy buying in banking and financial stocks, and robust domestic macroeconomic indicators. India’s steady GDP growth of 6.2 per cent and controlled inflation at 3.61 per cent reinforced investor confidence, ensuring economic stability.”
The broader markets outperformed the benchmark indices, with the Nifty Midcap Select rising 249.50 points or 2.29 per cent to 11,142.65 and Nifty Next 50 surging 1,564.80 points or 2.63 per cent to 60,971.40.
According to Satish Chandra Aluri from Lemonn Markets Desk, “Benchmark indices extended gains for the second consecutive day on Tuesday, in a broad-based recovery on positive global cues ahead of key central bank meetings across the globe. Broader Mid and Small caps also posted sharp gains for the day, with all sectors contributing to the rally.”
Market participants are closely watching the upcoming US Federal Reserve meeting, with a focus on the Fed’s projections on future rate cuts, growth, and inflation expectations.
In the technical analysis, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, mentioned, “A long bull candle was formed on the daily chart, signaling a decisive upside breakout of the important overhead resistance. The market action signals a bullish trend moving forward.”
The Indian rupee strengthened against the US dollar for the fifth consecutive day, supported by robust economic data and optimistic market sentiment.
In the derivatives space, Sundar Kewat, Technical and Derivatives Analyst at Ashika Stock Broking, highlighted high-volume, high-gain stocks such as Ola Electric, Easy Trip Planners, Ircon International, One Mobikwik Systems Ltd, and Morepen Laboratories. He also noted that Policybazaar, Paytm, CAMS, Zomato, and Poonawalla were among the top gainers in the derivatives segment.
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates, mentioned that the volatility index, India VIX, cooled off, indicating a decline in market volatility. He added that Nifty crossed key resistance levels and formed a bullish candle on the daily chart.
In the commodities market, gold continued its upward trajectory, while oil prices also gained ground due to geopolitical tensions.
Devarsh Vakil, Head of Prime Research at HDFC Securities, provided additional insights into the market performance and highlighted the strong contribution of ICICI Bank Ltd. to the index growth.
Vinod Nair, Head of Research at Geojit Financial Services, highlighted the anticipated rebound in domestic earnings and cautioned about ongoing FII outflows and global uncertainties.
Prashanth Tapse, Senior VP at Mehta Equities, expressed concerns about challenges due to global issues and domestic growth slowdown fears.
Ajit Mishra, SVP of Research at Religare Broking, emphasized the alignment between the benchmark index and banking majors, supporting further recovery with intermittent volatility expected from global factors.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, provided a technical perspective on the market outlook and recommended a buying strategy for day traders.
Bhavik Patel, Senior Research Analyst at Tradebulls Securities, highlighted the value buying in banking, auto, and realty sectors, leading to a positive market momentum.
Rajesh Bhosale, Equity Technical Analyst at Angel One, pointed out the structural bottom formation for the near term, as Nifty closed convincingly above key resistance levels.
Looking ahead, Rupak De, Senior Technical Analyst at LKP Securities, forecasted a potential move towards 23,150 in the short term, with support at 22,700 on the lower end.
