Indian equity benchmarks closed higher on Tuesday, with the Sensex gaining 356 points and the Nifty topping the 24,100 mark, buoyed by positive global cues and state election results.
Market Performance
The 30-share BSE Sensex surged 356.46 points, or 0.45%, to close at 79,476.63. The broader NSE Nifty advanced 104.70 points, or 0.44%, to settle at 24,100.50. The rally was broad-based, with buying across most sectors.
Key Drivers
Investor sentiment got a boost from strong global markets, as hopes of a US interest rate cut and easing geopolitical tensions lifted risk appetite. Additionally, the outcome of recent state elections, which saw the ruling party performing well, provided political stability and policy continuity assurance.
Sectoral Trends
- Banking and financial stocks led the gains, with HDFC Bank, ICICI Bank, and SBI rising between 1% and 2%.
- IT stocks also contributed, with Infosys and TCS gaining marginally.
- Auto stocks remained mixed, while metal and pharma stocks saw some profit booking.
Broader Market
The BSE midcap and smallcap indices outperformed the benchmarks, rising 0.6% and 0.8%, respectively. This indicates strong investor interest in mid and small-cap stocks.
Global Cues
Asian markets closed higher, tracking Wall Street's record close. Japan's Nikkei gained 1.2%, while Hong Kong's Hang Seng rose 0.8%. European markets also opened in positive territory.
Analysts expect the momentum to continue in the near term, driven by domestic flows and improving macroeconomic fundamentals. However, they caution that volatility may persist due to global uncertainties and upcoming US Federal Reserve policy decisions.
