Equity markets saw a rebound on Tuesday, with the BSE Sensex climbing 535.24 points to close at 75,901.41. The rally was fueled by banking and financial stocks following the Reserve Bank of India’s announcement of liquidity injection measures through open market operations.
The NSE Nifty also surged 128.10 points to end at 22,957.25, although it pulled back significantly from its intraday high of 23,137 in the final trading hour. The Bank Nifty was the top performer, rising 802.20 points or 1.67%, closing at 48,866.85. The Nifty Financial Services index also posted significant gains, up 422.80 points or 1.89%.
“The benchmark indices had a volatile trading session, with the Nifty closing 128 points higher,” noted Shrikant Chouhan, Head of Equity Research at Kotak Securities. “The long-legged Doji candlestick formation on the daily charts reflects indecision between bulls and bears.”
Among the top gainers in the financial sector on the NSE were Bajaj Finance, up 4.31%, followed by Axis Bank (3.71%), Shriram Finance (3.56%), Bajaj Finserv (3.42%), and HDFC Bank (2.67%). On the other hand, Sun Pharma saw the biggest decline, falling 4.24%, with other major losers including Britannia (-2.15%), Hindalco (-2.08%), Grasim (-1.75%), and BEL (-1.69%).
Market breadth remained negative, with 2,666 stocks declining and 1,308 advancing on the BSE. Additionally, 60 stocks hit 52-week highs, while 569 touched their 52-week lows.
“The Nifty experienced a relief rally after two consecutive days of decline,” said Nandish Shah, Deputy Vice President at HDFC Securities. “Nifty Midcap 100 fell by 0.51%, while Nifty Smallcap 100 plunged by 1.81%.”
The Indian rupee continued to face pressure, closing at 86.51 against the US dollar. Factors such as persistent FII outflows and a rise in the dollar index contributed to the rupee’s decline.
In the commodities segment, gold gained ₹380 to trade at ₹79,950 on MCX. Trivedi added, “Comex gold found strong support near $2,735, with key events like the U.S. Federal Reserve policy decision and India’s Union Budget keeping participants cautious.”
Looking ahead, market experts remain cautious about the near-term outlook. “The market is likely to continue experiencing volatility, with uncertainty surrounding the RBI MPC meet and the upcoming FOMC meeting,” said Ameya Ranadive, Senior Technical Analyst at StoxBox.
Sector-wise, the Realty index emerged as the top gainer, surging over 2%, while the Capital Market and Pharma indices faced the most pressure, declining over 2% each. Nair, Head of Research at Geojit Financial Services, concluded, “Large-cap stocks outperformed, while mid-and small-cap stocks continued to decline due to overvaluation.”
