Benchmark stock market indices closed higher on Tuesday, jumping over renewed hopes of a trade deal between India and the US. Markets saw a broad-based rally but auto, banking and IT sector stocks led the positive movement.
The S&P BSE Sensex gained 594.95 points to close at 82,380.69 points, while the NSE Nifty50 added 169.90 points to end at 25,239.10.
Vinod Nair, Head of Research, Geojit Investments Limited, said that the domestic market sustained its recovery trend, supported by favourable global cues on expectations of a 25 bps rate cut in the forthcoming US Fed policy decision and renewed optimism surrounding the resumed India-US trade negotiations.
“Auto and consumer durable stocks outperformed, ahead of the rollout of new GST rates and festive-driven demand expectations. Going forward, investor attention will remain on trade discussions, while strong domestic macro fundamentals are expected to drive upward earnings revisions, supporting current valuations and mitigating downside risks,” he added.
The top gainers were Kotak Mahindra Bank with a gain of 2.64%, Larsen & Toubro up 2.28%, Mahindra & Mahindra rising 2.22%, Maruti Suzuki up 1.99%, and Bharti Airtel gaining 1.88%.
The only losers on Sensex were Bajaj Finance down 0.69% and Asian Paints slipping 0.87%. Most stocks closed in green, indicating a positive trend.
Nifty Midcap100 and Nifty Smallcap100 gained 0.54% and 0.95% respectively after market closed. India VIX fell by 1.20%.
Among sectoral indices, Nifty Auto rose by 1.44%, Nifty Financial Services 25/50 gained 0.40%, Nifty IT increased by 0.86%, Nifty Media went up by 0.86%, Nifty Metal added 0.83%, Nifty Pharma gained 0.30%, Nifty PSU Bank went up by 0.43%, Nifty Private Bank rose by 0.78%, Nifty Realty increased by 1.07%, Nifty Healthcare Index added 0.06%, Nifty Consumer Durables rose by 0.80%, and Nifty Oil & Gas gained 0.86%. On the other hand, Nifty FMCG declined by 0.27%.
