Indian equity benchmarks rebounded strongly on Tuesday, snapping a three-day losing streak, as the BSE Sensex surged 640 points and the NSE Nifty closed above the 24,000 mark. The rally was driven by broad-based buying across sectors, with banking, IT, and auto stocks leading the charge.
Market Performance
The 30-share BSE Sensex jumped 640.27 points, or 0.81 percent, to settle at 79,476.63. During the session, it touched a high of 79,619.70 and a low of 78,836.32. Similarly, the broader NSE Nifty advanced 186.20 points, or 0.78 percent, to close at 24,143.75, after oscillating between 24,186.90 and 23,949.45.
Top Gainers and Losers
Among the Sensex pack, the top gainers included Axis Bank, Bajaj Finance, Tata Motors, Maruti Suzuki, and Infosys, rising up to 2.5 percent. On the other hand, laggards were HCL Technologies, Asian Paints, and Power Grid Corporation, which slipped marginally.
Driving Factors
Market analysts attributed the recovery to value buying at lower levels after three consecutive days of decline. Positive global cues, particularly from Asian markets, also bolstered sentiment. Additionally, expectations of a rate cut by the US Federal Reserve in September and a decline in crude oil prices supported the rally.
Sectoral Trends
All sectoral indices ended in the green, with the Nifty Bank index climbing 1.2 percent, Nifty IT gaining 0.9 percent, and Nifty Auto rising 1.1 percent. The broader markets also performed well, with the BSE Midcap and Smallcap indices advancing 0.8 percent and 0.6 percent, respectively.
Broader Market View
The market breadth was positive, with 2,073 stocks advancing against 1,648 declining on the BSE. Meanwhile, 153 stocks hit their 52-week highs, while 22 touched their 52-week lows. The volatility index India VIX eased 3.5 percent to 14.2, indicating reduced fear among traders.
Foreign institutional investors (FIIs) were net buyers in the cash market, purchasing equities worth Rs 1,234 crore, while domestic institutional investors (DIIs) also bought shares worth Rs 876 crore, provisional data showed.
Outlook
Experts believe that the market may continue to consolidate in the near term, but the underlying trend remains positive due to strong domestic fundamentals. The upcoming quarterly earnings season and global monetary policy decisions will be key triggers for the market.
