Equity markets posted strong gains on Tuesday, with the Sensex surging 1,131.31 points or 1.53 per cent to close at 75,301.26 and Nifty 50 climbing 325.55 points or 1.45 per cent to end at 22,834.30, driven by positive global cues and robust performance in banking and financial stocks.
The rally came amid optimism over potential ceasefire talks between Russia and Ukraine, and economic stimulus measures in China. Banking stocks emerged as the top performers with the Bank Nifty gaining 960.35 points or 1.99 per cent to close at 49,314.50.
ICICI Bank led the gainers on NSE, jumping 3.35 per cent to ₹1,311.5 with volumes of 1,56,45,427 shares. Other major gainers included Larsen & Toubro (3.07 per cent), Shriram Finance (3.00 per cent), Mahindra & Mahindra (2.95 per cent), and Tata Motors (2.69 per cent).
Only three stocks in the Nifty 50 ended in the red. Bajaj Finserv was the top loser, declining 1.34 per cent to ₹1,846.5, followed by Tech Mahindra (-0.50 per cent) and Bharti Airtel (-0.44 per cent).
Market breadth was decisively positive, with 2,815 stocks advancing against 1,221 declining on the BSE. The session saw 65 stocks hitting 52-week highs while 294 touched 52-week lows. Additionally, 13 stocks hit the upper circuit while 7 hit the lower circuit.
“Sensex rebounded strongly, driven by positive global cues, heavy buying in banking and financial stocks, and robust domestic macroeconomic indicators,” said Mr. Ram Medury, Founder and CEO of Maxiom Wealth. “A global equity uptrend fueled foreign inflows, while stocks like IndusInd Bank gained momentum, pushing indices higher. India’s steady GDP growth of 6.2 per cent and controlled inflation at 3.61 per cent reinforced investor confidence, ensuring economic stability.”
The broader markets outperformed the benchmark indices, with the Nifty Midcap Select rising 249.50 points or 2.29 per cent to 11,142.65 and Nifty Next 50 surging 1,564.80 points or 2.63 per cent to 60,971.40.
Satish Chandra Aluri from Lemonn Markets Desk noted, “Benchmark indices extended gains for second consecutive day on Tuesday, in a broad-based recovery on positive global cues ahead of key central bank meetings across the globe. Broader Mid and Small caps also posted sharp gains for the day. All sectors also posted gains for the day with Realty and Media segments leading the rebound.”
Market participants are closely watching the upcoming US Federal Reserve meeting. “US Fed is widely expected to remain on hold, but focus will be on US Fed projections on future rate cuts, growth and inflation expectations along with Fed chair Powell’s press conference,” Aluri added.
On the technical front, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, commented, “A long bull candle was formed on the daily chart, that has surpassed the crucial overhead resistance of around 22700-22800 levels and closed higher. Technically, this market action signals a decisive upside breakout of the important overhead resistance.”
The Indian rupee strengthened against the US dollar, marking its fifth consecutive day of gains. “The Indian rupee appreciated for the fifth successive day, achieving its most significant five-day percentage gain since March 2023,” said Dilip Parmar, Research Analyst at HDFC Securities. “Robust economic data, optimistic market sentiment, and expectations of foreign fund inflows provided substantial support to the domestic currency.”
In the derivatives space, Sundar Kewat, Technical and Derivatives Analyst at Ashika Stock Broking, observed, “Among high-volume, high-gain stocks, Ola Electric, Easy Trip Planners, Ircon International, One Mobikwik Systems Ltd, and Morepen Laboratories led the charge. In the derivatives space, Policybazaar, Paytm, CAMS, Zomato, and Poonawalla were among the top gainers.”
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates, added, “The volatility index, India VIX, cooled off by 1.52 per cent to 13.21, indicating a decline in market volatility. Technically, Nifty crossed the hurdle of the bearish gap placed at 22,668–22,720 and formed a bullish candle on the daily chart.”
In commodities, gold continued its upward trajectory. “Gold continues its upward momentum, rising by ₹570 to ₹88,600 in MCX and gaining $15 to reach $3,025 in Comex,” said Jateen Trivedi, VP Research Analyst at LKP Securities. “The overall sentiment remains uncertain amid heightened geopolitical tensions, with President Donald Trump vowing to persist with U.S. strikes on Yemen’s Houthis unless their Red Sea attacks cease.”
Oil prices also gained ground, with WTI crude holding above $67.70 per barrel. “The surge followed US military strikes on Yemen, with the Department of Defense stating that these attacks would continue until the Houthis halt their assaults on shipping in the region,” noted Kaynat Chainwala, AVP-Commodity Research at Kotak Securities. “Today, WTI crude holds above $67.70 per barrel, supported by a series of military strikes launched by Israel across Gaza, effectively ending a weeks-long standoff over the extension of a ceasefire that had halted fighting in January.”
Devarsh Vakil, Head of Prime Research at HDFC Securities, provided additional context: “After opening 154 points higher, Nifty maintained its upward momentum throughout the trading session, finishing near the day’s peak. ICICI Bank Ltd. emerged as the top contributor to the index gain with the largest individual move, surging 3.2 per cent. Cash market volumes on the NSE saw an 18 per cent increase compared to the previous day.”
Vinod Nair, Head of Research at Geojit Financial Services, cautioned, “The anticipated rebound in domestic earnings, along with a recent decline in the dollar index and lower crude prices, is expected to support this recovery. However, continued FII outflows, driven by higher risk-free rates and the appeal of markets like China—along with tariff uncertainties, keep investors cautious during this phase.”
Prashanth Tapse, Senior VP at Mehta Equities, added a note of caution: “But the recovery would be difficult to hold on due to global challenges and fears of slowing domestic growth due to Trump’s threat to impose tariffs on key economies including India.”
Ajit Mishra, SVP of Research at Religare Broking, advised, “Looking ahead, the alignment between the benchmark index and banking majors supports further recovery, with Nifty eyeing the 23,100 level. However, global factors such as the Federal Reserve meeting and geopolitical uncertainties may introduce intermittent volatility. A ‘buy on dips’ strategy remains prudent.”
Shrikant Chouhan, Head of Equity Research at Kotak Securities, provided a technical perspective: “We believe that the short-term market outlook is bullish; but for day traders, buying on intraday corrections and selling on rallies would be the ideal strategy. In the near future, 22,700/75000 and 22,600/74500 will act as key support zones, while 22,950/75600 and 23,000/75800 could serve as profit-booking areas for day traders.”
Bhavik Patel, Senior Research Analyst at Tradebulls Securities, noted, “Banking as well as Auto and realty which were beaten down in recent corrections found value buying by institutions today. Market after opening gap up, sustained its positive momentum throughout the day and managed to close strongly.”
Rajesh Bhosale, Equity Technical Analyst at Angel One, highlighted, “Nifty has convincingly closed above the 20 DEMA after a prolonged period, while surpassing the 22650–22700 zone, which had acted as resistance over the past three weeks. This breakout confirms the formation of a structural bottom for the near term.”
Looking ahead, Rupak De, Senior Technical Analyst at LKP Securities, stated, “In the short term, the index may move towards 23,150, while support is placed at 22,700 on the lower end.”
