Indian Stock Markets Continue Upward Momentum for Second Straight Session
Equity benchmark indices in India concluded Tuesday's trading session on a positive note, marking their second consecutive day of gains. This upward movement was primarily fueled by robust performances in key sectors such as banking, information technology, and capital goods.
Benchmark Indices Show Modest Gains
The 30-share BSE Sensex advanced by 173.81 points, equivalent to a 0.21 percent increase, settling at 83,450.96. Throughout the trading day, the index fluctuated between a high of 83,598 and a low of 82,987.43, indicating some volatility but ultimately ending in the green.
Similarly, the broader 50-share NSE Nifty climbed 42.65 points, or 0.17 percent, to close at 25,725.40. This consistent performance follows a strong rally on Monday, where the Sensex surged 650.39 points and the Nifty gained 211.65 points, setting a positive tone for the week.
Top Gainers and Losers Across Indices
Among the Nifty 50 constituents, Adani Enterprises led the gainers with a notable rise of 2.67 percent, followed by ITC at 2.36 percent and Bharat Electronics Limited at 2.03 percent. Other significant advancers included Infosys, Larsen & Toubro, and Adani Ports SEZ, all posting gains above 1.5 percent.
On the flip side, Kwality Wall's experienced the steepest decline, dropping 5.00 percent, with Hindalco and Eternal also among the top losers, falling 1.92 percent and 1.78 percent respectively.
In the Sensex, ITC, Bharat Electronics Limited, and Infosys were the standout performers, while Kwality Wall's, Eternal, and Tata Steel faced the most significant losses.
Sectoral Performance and Market Breadth
Sectoral indices painted a mixed picture, with PSU Bank emerging as the top gainer, soaring 2.36 percent. The IT sector also showed strength, rising 1.15 percent, supported by strategic AI partnerships announced by companies like Infosys. Other sectors such as Industrials, Services, and FMCG posted gains ranging from 0.76 to 1.13 percent.
Conversely, Metal, Commodities, Energy, and Realty sectors lagged, with metal stocks particularly under pressure due to weak precious metal prices, dragging the Nifty Metal index down by 1 percent.
Broader markets remained firm, with the BSE Smallcap Select Index increasing 0.49 percent and the Midcap Select Index gaining 0.26 percent. Overall market breadth was positive, with 2,447 stocks advancing, 1,756 declining, and 149 remaining unchanged.
The total market capitalization of BSE-listed firms witnessed a substantial rise, adding Rs 1,52,688.24 crore to reach Rs 4,70,11,313.57 crore, equivalent to approximately USD 5.18 trillion.
Expert Insights and Global Influences
Vinod Nair, Head of Research at Geojit Investments Limited, commented that domestic markets traded in a range-bound manner. He noted that the IT sector, after a recent sharp correction, saw selective buying interest, bolstered by announcements of strategic collaborations with global AI partners.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, highlighted that IT stocks extended their recovery for the second session, with sentiment improving following Infosys' partnership with Anthropic. He also mentioned that defence stocks gained 1.3 percent ahead of a meeting between French President Emmanuel Macron and Prime Minister Narendra Modi, on expectations of discussions regarding additional Rafale fighter jet acquisitions.
According to Bajaj Broking, benchmarks managed to extend gains despite subdued global cues, as investors adopted a cautious stance ahead of key events such as signals from the US Federal Reserve, macroeconomic data releases, and developments in US-Iran discussions.
Global Market Trends and Institutional Activity
In Asian markets, Japan's Nikkei 225 index closed 0.47 percent lower, while markets in China, Hong Kong, and South Korea were closed for Lunar New Year holidays. European markets were trading higher in mid-session deals, and US markets remained closed on Monday for Presidents' Day.
On the institutional front, foreign institutional investors (FIIs) sold equities worth Rs 972.13 crore on Monday, whereas domestic institutional investors (DIIs) purchased shares worth Rs 1,666.98 crore, as per exchange data. In commodity markets, Brent crude oil prices fell 0.79 percent to $68.13 per barrel.
This extended analysis provides a comprehensive overview of Tuesday's market dynamics, highlighting the sustained bullish sentiment driven by sector-specific gains and expert commentary on future trends.
