The Indian stock market closed in the green on Tuesday, as Sensex and Nifty clocked a 4% rally in three consecutive sessions amid optimism around the Iran-US peace deal framework.
Sensex jumped more than 540 points to close at 76,809, while Nifty 50 rose more than 135 points to end the session at 23,989. Broader markets also gained sharply, with Nifty Midcap 100 and Nifty Smallcap 100 indices gaining 0.4% each, as India VIX, which measures volatility in markets, tumbled 7% to 13.40.
HCL Technologies shares were the top gainers on Sensex, jumping around 4% after the company announced an investment of Rs 1,427.25 crore in Axonwise Private Limited (Sarvam AI). NTPC, Hindustan Unilever (HUL), Bajaj Finserv, Tech Mahindra, Bajaj Finance, Reliance Industries (RIL) and Tata Consultancy Services (TCS) shares gained around 2% each. Bucking the trend, Maruti Suzuki, UltraTech Cement, IndiGo and Tata Steel shares tumbled nearly 1% each.
Nifty Realty jumped more than 2% to emerge as the top sectoral gainer. Nifty IT, meanwhile, gained nearly 2%, while Nifty FMCG and Nifty Consumer Durables gained over 1% each. Bucking the trend, the Nifty Metal index tumbled 1.5%. The market breadth was broadly positive, with 1,956 stocks advancing on the NSE while 1,356 declined and 104 remained unchanged.
What lies ahead?
"Domestic equity markets continued their recovery momentum, buoyed by growing optimism around a de-escalation in US–Iran tensions and softening crude oil prices, said Vinod Nair, Head of Research at Geojit Investments. He highlighted that the rally was broad-based, with notable gains in IT, realty, FMCG and oil & gas sectors.
Metal stocks, however, lagged behind, weighed down by a sharp pullback in global metal prices as supply-side concerns began to subside, he noted. “Investor sentiment remains measured ahead of the upcoming US Fed policy meeting, the first under the newly appointed Chair. While the benchmark interest rate is widely anticipated to hold steady, market participants will pay close attention to the forward guidance and commentary on the trajectory of monetary policy,” according to the analyst.
"Following a positive start, Nifty 50 maintained its strength throughout the day. On the hourly chart, the Nifty has been sustaining above the 20 EMA, indicating a positive short-term trend. Overall, the index remained range-bound during the weekly NSE options expiry session. The near-term sentiment continues to be positive; however, the upside may remain limited, with choppy price action likely to persist. On the higher side, immediate resistance is placed in the 24,070–24,200 zone, where the Nifty may encounter selling pressure. On the downside, immediate support is placed at 23,900, followed by 23,700,” said Rupak De, Senior Technical Analyst at LKP Securities.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
