Indian equity markets witnessed a strong start on Tuesday, with the benchmark indices Sensex and Nifty registering significant gains in early trade. The positive momentum was driven by favorable global market trends and buying interest in banking and automobile stocks, signaling renewed investor confidence.
The BSE Sensex surged by 490.12 points, reaching 74,660.07, while the NSE Nifty climbed 162.55 points to trade at 22,671.30. Market sentiment remained buoyant as several blue-chip stocks contributed to the rally. Among the top gainers in the Sensex pack were ICICI Bank, Zomato, Mahindra & Mahindra, Tata Motors, Larsen & Toubro, Hindustan Unilever, Power Grid, and Adani Ports. Conversely, Bajaj Finserv and Bajaj Finance faced selling pressure, emerging as the laggards of the session.
Asian markets provided a supportive backdrop, with key indices in Seoul, Tokyo, Shanghai, and Hong Kong all trading in positive territory. The optimism extended from Wall Street, where U.S. markets closed higher on Monday, boosting global risk appetite.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the latest market trends indicate that a bottom may have been established, although further corrections cannot be entirely ruled out. He highlighted several domestic macroeconomic factors that have contributed to the market’s recovery, including a rebound in GDP growth for Q3 FY25 to 6.2%, a rise in the Index of Industrial Production (IIP), higher gross tax collections, a declining trade deficit, and a notable drop in Consumer Price Index (CPI) inflation to 3.6%. These elements are providing a positive framework for Indian equities.
However, Vijayakumar also cautioned that domestic tailwinds alone might not be strong enough to sustain a long-term market uptrend. Global headwinds, particularly concerns arising from tariff wars, could pose challenges that counterbalance the ongoing domestic recovery.
On the commodities front, Brent crude oil prices edged up by 0.25%, trading at USD 71.25 per barrel, reflecting minor fluctuations in the global energy market.
Meanwhile, foreign institutional investors (FIIs) continued to be net sellers, offloading equities worth Rs 4,488.45 crore on Monday. In contrast, domestic institutional investors (DIIs) were net buyers, infusing Rs 6,000.60 crore into the market, as per exchange data.
On Monday, the Sensex had snapped a five-day losing streak, climbing 341.04 points, or 0.46%, to settle at 74,169.95. The Nifty had also registered gains, rising by 111.55 points, or 0.50%, to close at 22,508.75.
With global cues remaining favorable and domestic economic indicators showing resilience, investors will be closely monitoring further developments to assess whether the current momentum can be sustained in the coming sessions.
