A total of 2,447 stocks advanced, while 1,756 declined and 149 remained unchanged.

Photograph: Danish Siddiqui/Reuters

Stock markets closed higher for the second straight session on Tuesday, driven by gains in bank, IT and capital goods shares.

The 30-share BSE Sensex climbed 173.81 points, or 0.21 per cent, to close at 83,450.96.

The index moved between a high of 83,598 and a low of 82,987.43 during the day.

The 50-share NSE Nifty advanced 42.65 points, or 0.17 per cent, to settle at 25,725.40.

Gainers and losers

Among the Sensex constituents, ITC, Bharat Electronics Ltd, Larsen & Toubro, Infosys, Asian Paints, Titan, Adani Ports, HCL Technologies, Sun Pharmaceuticals, Maruti Suzuki India, IndiGo, State Bank of India and Tech Mahindra were the major gainers.

On the other hand, Eternal, Tata Steel, Trent, Reliance Industries, Mahindra & Mahindra, Bajaj Finserv, Axis Bank, Bharti Airtel, Kotak Mahindra Bank and Hindustan Unilever ended with losses.

Broader indices also traded firm, with the BSE Smallcap Select Index rising 0.49 per cent, and Midcap Select Index gained 0.26 per cent.

What analysts say

Vinod Nair, head of research, Geojit Investments, said, “Domestic markets traded in a range-bound manner.

“The IT sector, following a sharp correction, witnessed selective bottom-fishing, aided by announcements of strategic collaborations with global AI partners.”

Sectoral indices

Among sectoral indices, PSU Bank rose by 2.36 per cent, followed by IT by 1.15 per cent, Industrials by 1.13 per cent, Services by 0.98 per cent, Focussed IT by 0.94 per cent, FMCG by 0.87 per cent, Consumer Durables by 0.85 per cent, and Capital Goods by 0.76 per cent.

On the other hand, Metal, Commodities, Energy, and Realty were the only laggards.

A total of 2,447 stocks advanced, while 1,756 declined and 149 remained unchanged.

The market capitalisation of BSE-listed firms increased by Rs 152,688.24 crore to Rs 4,70,11,313.57 crore ($5.18 trillion).

“IT stocks extended gains for the second consecutive session after the recent sharp correction.

“The sentiment in the sector improved after Infosys announced a strategic partnership with Anthropic, easing concerns around AI-led disruption.

“Defence stocks gained 1.3 per cent ahead of the meeting between French President Emmanuel Macron and Prime Minister Narendra Modi, as expectations rose around potential discussions on the acquisition of additional Rafale fighter jets,” Siddhartha Khemka – head of research, wealth management, Motilal Oswal Financial Services Ltd, said.

On the downside, metal stocks came under pressure tracking weakness in precious metal prices, dragging the Nifty Metal index down 1 per cent.

Overall, we expect markets to remain firm with a positive bias, tracking global cues and developments on the domestic sectoral front, he added.

According to Bajaj Broking, Indian equity benchmarks extended their gains for the second straight session on Tuesday, closing in positive territory despite subdued global cues.

Market participants adopted a watchful stance, awaiting clearer signals from the Federal Reserve, upcoming macroeconomic data releases, and further developments surrounding US-Iran discussions, while maintaining a cautiously optimistic outlook.

Asian markets

In Asian markets, Japan’s Nikkei 225 index settled 0.47 per cent lower, while markets in China, Hong Kong and South Korea remained closed for the Lunar New Year holidays.

The US equities market remained shut on Monday on account of Presidents’ Day.

Foreign institutional investors sold equities worth Rs 972.13 crore on Monday, while domestic institutional investors purchased stocks worth Rs 1,666.98 crore, according to the exchange data.

Brent crude, the global oil benchmark, fell 0.79 per cent to $68.13 per barrel.