Indian Stock Market Extends Winning Streak to Three Sessions
The Indian equity markets maintained their positive momentum on Tuesday, February 10, marking the third consecutive session of gains. This sustained rally was primarily fueled by strong performances in the automobile, metal, and technology sectors, as investor sentiment remained optimistic following significant developments in international trade and foreign capital flows.
Benchmark Indices Register Modest Gains
The benchmark indices closed in positive territory, with the Nifty 50 climbing 0.26% to settle at 25,933 points. Similarly, the S&P BSE Sensex advanced 0.27%, closing at 84,294 points. The broader market indices also participated in the upward movement, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices rallying over 0.40% during the trading session.
Sectoral Performance Highlights
In terms of sectoral performance, Nifty Media emerged as the top gainer with an impressive 2.47% surge. This was closely followed by Nifty Auto, which jumped 1.44%, and Nifty Metal, which gained 1%. On the other hand, Nifty Pharma experienced a slight decline of 0.32%, while the Nifty PSU Bank index closed with a marginal loss of 0.10%.
Key Market Drivers
Foreign Portfolio Investors (FPIs) continued to demonstrate confidence in Indian equities, injecting an additional ₹2,254 crore into the market during the previous session. This brought their month-to-date inflows to a substantial ₹11,641 crore, providing significant support to market sentiment.
The announcement of an interim trade deal between India and the United States over the weekend served as another positive catalyst. This agreement is expected to reduce taxes on Indian imported goods from 50% to 18%, potentially boosting bilateral trade relations and economic cooperation between the two nations.
Global Factors Influencing Markets
On the geopolitical front, progressing talks between Iran and the United States have helped keep crude oil prices under pressure, which generally benefits oil-importing economies like India. Additionally, the US dollar has weakened by approximately 1% over the last two sessions following reports that Chinese regulators have advised financial institutions to limit their holdings of US Treasury securities.
Top Performers and Underperformers
Among individual stocks, Praj Industries, Swiggy, BSE, Force Motors, and Etrenal featured prominently among the day's top gainers. The market's positive breadth reflected the overall bullish sentiment, though some pharmaceutical and public sector banking stocks faced minor selling pressure.
The combination of favorable domestic factors, including sustained foreign investment inflows, and positive international developments, particularly the US-India trade agreement, has created an environment conducive to market growth. As global economic uncertainties ease and trade relations improve, market participants remain cautiously optimistic about the continuation of this upward trend in the coming sessions.
