After a four-day decline in the Indian stock markets, there were signs of revival on Tuesday with the benchmark Sensex gaining 317 points and the Nifty edging higher by 113 points.
The 30-share BSE Sensex climbed 317.45 points or 0.39 per cent to settle at 82,570.91. During the day, it jumped 490.16 points or 0.59 per cent to 82,743.62.
The 50-share NSE Nifty went past its 25-k mark as it edged higher by 113.50 points or 0.45 per cent to 25,195.80.
In the last four trading days, the Sensex had dropped 1,459.05 points or 1.74 per cent and the Nifty declined by 440 points or 1.72 per cent.
Among Sensex firms, Sun Pharma, Trent, Tata Motors, Bajaj Finserv, Mahindra & Mahindra and Bajaj Finance were the major gainers. The laggards were Eternal, Tata Steel, Kotak Mahindra Bank and Axis Bank.
Also Read: Sensex up 200 pts, Nifty above 25,150 in early trade
However, HCL Tech declined 3.31 per cent after the IT services firm reported a 9.7 per cent drop in consolidated net profit for the June quarter, hurt by higher expenses and the one-time impact of a client bankruptcy.
Monday’s retail inflation data showed a decline of 2.1 per cent in June on account of reduced food items’ prices because of widespread monsoon. The Consumer Price Index-based inflation was 2.82 per cent in May, and 5.08 per cent in June 2024. Inflation has been on a steady decline since November 2024.
Vinod Nair, head of research at Geojit Investments Limited, said the markets were showing signs of improvement as optimism was growing around the possibility of an interim trade deal with the US.
“Market sentiment is showing signs of improvement, supported by a blend of global and domestic developments. Optimism is growing around the possibility of an interim trade agreement with the US, which could lead to a moderation in tariff-related risks. Concurrently, domestic inflation has fallen to multi-year lows, strengthening expectations of a further rate cut by the RBI and potentially accelerating future economic growth, which is currently showing signs of improvement,” he said.
The BSE smallcap gauge climbed 0.95 per cent and midcap index went up by 0.83 per cent.
Among BSE sectoral indices, auto (1.48 per cent), healthcare (1.14 per cent), consumer discretionary (0.89 per cent), FMCG (0.80 per cent), realty (0.77 per cent) and services (0.58 per cent) were the gainers.
As many as 2,576 stocks advanced while 1,479 declined and 160 remained unchanged on the BSE.
Ajit Mishra, SVP, Research, Religare Broking Limited, welcomed the respite in markets, especially after four consecutive sessions of decline.
“Participants drew comfort from the further easing of CPI inflation, which triggered notable buying in rate-sensitive sectors on hopes of a potential rate cut.
However, continued disappointment from the IT space, following HCL Technologies' results, capped overall momentum,” he said.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Hong Kong's Hang Seng settled in the positive territory while Shanghai's SSE Composite index ended lower.
European markets were trading in the green, while the US markets ended in positive territory on Monday.
Global oil benchmark Brent crude dipped 0.17 per cent to USD 69.09 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,614.32 crore on Monday, while Domestic Institutional Investors (DIIs) bought stocks worth ₹1,787.68 crore, according to exchange data.
On Monday, the Sensex dropped by 247.01 points or 0.30 per cent to settle at 82,253.46. The Nifty settled lower by 67.55 points or 0.27 per cent to 25,082.30.
Follow us
