Market Rally Led by Energy and Banking Stocks
The Indian equity benchmarks extended their gains on Tuesday, with the BSE Sensex jumping 277 points to close at 79,476. The NSE Nifty 50 index rose 85 points to settle at 24,124, marking its first close above the 24,000 mark in over a week. The rally was broad-based, led by gains in energy, banking, and auto stocks.
Crude Oil Prices Support Market Sentiment
Crude oil prices held their recent gains, with Brent crude trading near $85 per barrel. This stability provided a positive cue for energy stocks, with Reliance Industries and ONGC among the top gainers. Analysts noted that the steady oil prices eased concerns about input costs for oil-dependent sectors.
Global Cues and FII Inflows Boost Confidence
Positive global cues from Asian and European markets also contributed to the bullish sentiment. Foreign institutional investors (FIIs) remained net buyers, pumping in over ₹1,200 crore in the cash market on Tuesday. According to market experts, the consistent FII inflows have been a key driver of the recent uptrend.
Sectoral Performance: Banking and Auto Shine
The Nifty Bank index rose 0.8%, with HDFC Bank, ICICI Bank, and Axis Bank contributing to the gains. The auto sector also saw strong buying, with Maruti Suzuki and Tata Motors advancing over 1% each. Meanwhile, IT stocks witnessed profit booking after a recent run-up, with Infosys and TCS ending flat to negative.
Market Outlook: Key Levels to Watch
Technical analysts view the Nifty's close above 24,000 as a bullish signal. The immediate resistance is seen at 24,300, while support lies at 23,800. Vinod Nair, Head of Research at Geojit Financial Services, said, "The market is riding on optimism from steady crude prices and robust FII inflows. However, traders should watch for any spike in oil prices or global volatility."
