Indian equity markets maintained their positive trajectory for the second consecutive session on Tuesday, with benchmark indices closing firmly in the green amid encouraging global signals and selective buying in heavyweight stocks.
Market Performance Highlights
The Sensex advanced by 336 points, representing a 0.40% gain, to settle at 83,871.32, while the Nifty 50 climbed 121 points, or 0.47%, closing at 25,694.95. The trading session witnessed significant volatility, particularly on the weekly expiry day, but ultimately concluded with positive momentum extending Monday's recovery pattern.
According to Ajit Mishra, SVP of Research at Religare Broking Ltd, "Markets witnessed a volatile session on the weekly expiry day but eventually ended in the green, extending Monday's rebound. After an initial uptick, the Nifty drifted lower during the early hours; however, strong buying across heavyweights in the latter half lifted the index to close near the day's high."
Sectoral and Broader Market Trends
The market exhibited a mixed sectoral performance that kept traders actively engaged throughout the session. Information technology, automotive, and metal stocks emerged as the top performers, showing robust buying interest. Conversely, financial services, real estate, and pharmaceutical sectors ended the day on a subdued note, reflecting selective investor participation.
In the broader market landscape, the BSE Midcap index registered a modest gain of 0.20%, indicating continued investor interest in mid-sized companies. However, the Smallcap index experienced a slight decline of 0.09%, suggesting some profit-taking in smaller capitalization stocks.
Key Factors Driving Market Movement
Market analysts identified several crucial factors influencing Tuesday's trading dynamics. The initial weakness observed during early trading hours was primarily attributed to cautious global market cues and persistent selling by Foreign Institutional Investors (FIIs).
However, the market sentiment turned positive as renewed buying interest emerged in index heavyweight stocks. This recovery was further supported by growing optimism following Goldman Sachs' recent upgrade of India's rating outlook, which boosted investor confidence in the Indian economy's growth prospects.
Additional momentum came from some short-covering activities on weekly expiry, which strengthened the market's upward movement during the latter part of the trading session.
Stocks to Watch in Today's Trading
Several companies are expected to remain in focus during Wednesday's trading session, particularly those announcing their quarterly results. Tata Steel, Hindustan Aeronautics, IRCTC, Cochin Shipyard, Ashok Leyland, and Honasa Consumer will all declare their second quarter financial results today, making them stocks to watch closely.
In significant corporate developments, Tata Motors (previously known as TML Commercial Vehicles) is scheduled to list on both BSE and NSE today following the successful completion of its scheme of arrangement.
Other notable quarterly results include:
RVNL reported a 19.7% year-on-year decline in net profit to ₹230.3 crore for the September quarter, despite its revenue increasing by 5.5% to ₹5,123 crore.
Tata Power witnessed a marginal 0.7% year-on-year decline in net profit to ₹919.4 crore, while revenue slipped by 1% to ₹15,544 crore.
Torrent Power demonstrated strong performance with its Q2 net profit jumping 50.5% year-on-year to ₹723.7 crore, primarily boosted by higher merchant power and LNG sales.
BSE posted impressive growth with a 61% rise in its consolidated net profit for Q2, reaching ₹558 crore compared to ₹347 crore in the same quarter last year.
Bharat Forge announced that its board has approved raising up to ₹2,000 crore through a mix of instruments including term loans, non-convertible debentures, or other debt securities.
In pharmaceutical developments, Cipla and other Indian pharmaceutical companies have gained traction in the Chinese market, securing contracts to supply bulk generic medicines—particularly Dapagliflozin, a widely used drug for diabetes treatment.
EIH, the parent company of the Oberoi Group, reported a 12.4% year-on-year decline in net profit for Q2 to ₹113.7 crore, while revenue increased by 1.5% to ₹597.9 crore.
Godrej Industries saw its net profit for Q2 decline by 15.8% year-on-year to ₹242.4 crore, while revenue increased by 4.7% to ₹5,032 crore.
As markets continue to navigate global cues and domestic corporate developments, investors are advised to monitor these key stocks and sectoral trends for potential trading opportunities.
