Indian stock market indices, Sensex and Nifty, experienced a significant rally driven by metal and auto sectors, coupled with positive global market cues, marking a second consecutive day of gains.
Illustration: Uttam Ghosh
Key Points
- Sensex and Nifty closed nearly 1% higher, marking the second consecutive day of gains in the Indian stock market.
- The rally was primarily fuelled by strong performances in the metal and auto sectors, boosted by positive global market sentiment.
- A significant drop in India VIX, falling below 20, indicates easing volatility and contributed to the market’s upward trend.
- Foreign Institutional Investors (FIIs) were net sellers, while Domestic Institutional Investors (DIIs) provided support by buying stocks.
- Global oil benchmark Brent crude jumped over 2%, reflecting broader market optimism.
Benchmark stock indices Sensex and Nifty rallied for the second consecutive day on Tuesday, closing higher by nearly 1 per cent following a rally in metal and auto shares and a positive trend in global markets.
The 30-share BSE Sensex jumped 567.99 points or 0.75 per cent to settle at 76,070.84. During the day, it surged 801.41 points or 1.06 per cent to 76,304.26.
The 50-share NSE Nifty climbed 172.35 points or 0.74 per cent to end at 23,581.15.
From the 30-Sensex firms, Eternal surged the most by 5.70 per cent. Tata Steel, Mahindra & Mahindra, Bharat Electronics, Larsen & Toubro, Bharti Airtel and Maruti were also among the major gainers.
Infosys, Bajaj Finance, ITC, Tata Consultancy Services and HCL Tech were among the biggest laggards.
Global Market Influences
In Asian markets, South Korea’s benchmark Kospi jumped 1.63 per cent, while Hong Kong’s Hang Seng index ended marginally higher. Japan’s Nikkei 225 index and Shanghai’s SSE Composite index settled lower.
Markets in Europe were trading higher. The US market ended higher on Monday.
Analyst Insights on Market Recovery
“Indian equities extended their recovery for a second consecutive session, supported by easing volatility and selective sectoral strength, although underlying caution continues to shape market behaviour. A key positive was the sharp decline in India VIX, which dropped 8 per cent to sub-20 levels,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
Sectorally, the rebound was led by the automobile space, with the Nifty Auto index gaining 2 per cent, he added.
Brent crude, the global oil benchmark, jumped 2.44 per cent to USD 102.7 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 9,365.52 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 12,593.36 crore.
On Monday, the Sensex jumped 938.93 points or 1.26 per cent to settle at 75,502.85. The Nifty climbed 257.70 points or 1.11 per cent to end at 23,408.80.
