Benchmark stock market indices erased early losses made to close higher on Tuesday, fuelled by global sentiment and rallies in IT, auto, metal, and FMCG stocks.
The S&P BSE Sensex added 335.97 points to close at 83,871.32, while the NSE Nifty50 gained 120.60 points to end at 25,694.95.
Vinod Nair, Head of Research, Geojit Investments Limited, said that the markets recovered smartly and closed at the day’s high, supported by global cues as the U.S. Senate passed a bill to end the longest-ever federal shutdown.
“Importantly, the Q2 results season is nearing its end and is expected to conclude on a positive note, driven by better-than-expected performance by the broader market. The rally was sustained by gains in IT, auto, metal, and FMCG sectors,” he added.
Bharat Electronics topped the gainers’ list, rising 2.52%, followed closely by Mahindra & Mahindra, which gained 2.40%. Adani Ports advanced 2.11%, while HCL Technologies climbed 1.89%. Eternal and Infosys also added 1.44% each, contributing to the positive momentum on Dalal Street.
However, the day ended with a crash in some financial counters, which limited broader gains. Bajaj Finance was the biggest loser, plunging 7.38%, followed by Bajaj Finserv, which dropped 6.26%. Tata Motors fell 0.75%, Kotak Mahindra Bank slipped 0.30%, and Power Grid and Tata Steel both declined 0.22%.
“Investors are now awaiting the upcoming domestic inflation data, with expectations of continued moderation due to a steady decline in food prices—raising prospects of further policy easing by the RBI. Looking ahead, earnings are expected to witness a robust rebound in the third quarter, underpinned by multiple domestic tailwinds, though much will depend on the successful finalization of a trade deal with the US,” said Nair.
