MOHAMMAD ZIYAUDDIN
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Mumbai: Benchmark stock indices Sensex and Nifty ended the trading session on a high note on Tuesday, continuing the positive momentum from the previous day. The BSE Sensex made a significant comeback, reclaiming the 75,000 mark, driven by widespread buying and a bullish trend in global equities.
Market Performance
The BSE Sensex closed the day at 75,300, soaring by more than 1,100 points, while the NSE Nifty50 settled at 22,834, climbing over 300 points or 1.45%. This marked the second consecutive day of strong performance for the markets.
On the 30-share Sensex platform, notable stocks like Zomato, ICICI Bank, M&M, Tata Motors, and L&T closed in the green. On the other hand, Bajaj Finserv, Bharti Airtel, Tech Mahindra, and Reliance were among the laggards for the day.
Broader Market and Sector Performance
In the broader markets, the Nifty Microcap 250 index outperformed, climbing over 3% higher. Sectoral performance was strong, with the Media and Realty indices both closing higher by 3.62% and 3.16%, respectively.
Global Markets, Forex, and Oil Prices
Globally, stock markets saw positive trends. In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong all ended in the green. In Europe, markets traded higher, and US markets also ended positively on Monday.
Despite foreign institutional investors (FIIs) dumping Indian equities worth Rs 4,488.45 crore on Monday, domestic institutional investors (DIIs) came to the rescue by infusing Rs 6,000.60 crore, according to official exchange data.
In the global oil market, Brent crude gained 1.48%, reaching $72.12 per barrel. The Indian rupee also appreciated for the third consecutive session, gaining 26 paise to close at 86.55 (provisional) against the US dollar, supported by positive domestic market conditions and a weaker US dollar.
Market Outlook and Expert Insights
Vinod Nair, Head of Research at Geojit Financial Services, attributed the robust recovery in the domestic markets to positive global trends and domestic tailwinds. "Improved retail sales data from the US and China boosted investor confidence, while mid and small-cap stocks outperformed. All major sectors showed strong gains," he said.
Nair also mentioned that the anticipated rebound in domestic earnings, coupled with a decline in the dollar index and lower crude prices, will support the market recovery. However, he cautioned that continued FII outflows, driven by higher risk-free rates and the appeal of markets like China, along with tariff uncertainties, could keep investors cautious during this phase.
Overall, the Sensex and Nifty continued their strong rally on Tuesday, supported by positive global cues and healthy domestic sentiment. While concerns over FII outflows and tariff issues persist, the market remains upbeat, bolstered by favorable factors such as domestic earnings growth and improving global conditions. Investors are likely to stay cautious but optimistic, watching for further developments in the coming days.
