The BSE Sensex jumped 594.95 points (0.73%) to settle at 82,380.69, after touching an intraday high of 82,443.48. The NSE Nifty 50 climbed 169.90 points (0.68%) to end at 25,239.10. Broader indices also ended firm, led by buying across key sectors except FMCG.
BIZ DESK
Indian equity benchmarks closed sharply higher on Tuesday as renewed optimism over India-US trade negotiations and growing expectations of a US Federal Reserve rate cut buoyed investor sentiment.
The BSE Sensex jumped 594.95 points (0.73%) to settle at 82,380.69, after touching an intraday high of 82,443.48. The NSE Nifty 50 climbed 169.90 points (0.68%) to end at 25,239.10. Broader indices also ended firm, led by buying across key sectors except FMCG.
Vinod Nair, Head of Research at Geojit Financial Services, said: “Domestic equities sustained their recovery trend on the back of expectations of a 25-basis-point cut in the upcoming US Fed policy and optimism around resumed India-US trade discussions. Auto and consumer durable stocks led the rally, supported by festive season demand and the new GST rate rollout.”
Sector-wise Performance
- Automobile: Nifty Auto surged 1.44%, with Mahindra & Mahindra and Maruti Suzuki among top gainers, driven by festive demand and tax-related tailwinds.
- Information Technology: Nifty IT rose 0.86%, supported by stable US outlook and favorable currency movements; HCL Tech and TCS gained momentum.
- Banking & Financials: Nifty Bank added 0.47%, led by Kotak Mahindra Bank, Axis Bank, and SBI, though Bajaj Finserv ended lower.
- Infrastructure & Industrials: L&T advanced sharply, boosting capital goods and infra sentiment amid hopes of higher government spending.
- Telecom & Utilities: Bharti Airtel, NTPC, and PowerGrid posted solid gains on defensive buying and stable cash flow prospects.
- FMCG: Nifty FMCG slipped into the red, with Asian Paints and some consumer names under pressure on margin concerns.
Market Breadth & Currency Moves
The broader indices also stayed firm, with Nifty Small Cap 100 climbing 0.95% and Nifty Midcap 100 higher by 0.54%, indicating healthy participation beyond frontline stocks.
Meanwhile, the rupee appreciated 0.13% to 88.05 against the dollar, supported by global risk-on sentiment and expectations of easier monetary policy in the US.
Outlook
Analysts said investor focus will remain on India-US trade discussions and cues from the US Fed’s upcoming policy. Strong domestic fundamentals, upbeat festive demand, and stable macro indicators are expected to support earnings growth and sustain valuations in the near term.