Equity benchmarks closed higher for the second consecutive session on Tuesday, with the Nifty 50 gaining 172.35 points or 0.74 per cent to settle at 23,581.15 and the BSE Sensex advancing 567.99 points or 0.75 per cent to close at 76,070.84. Despite the headline gains, market breadth told a more cautious story — 440 stocks on the BSE hit fresh 52-week lows against only 56 at 52-week highs, even as advances outnumbered declines 2,332 to 1,930 out of 4,411 stocks traded.
The Nifty opened at 23,493.20, dipped to an intraday low of 23,346.60 in the first half before buyers emerged, driving the index to a high of 23,656.80. The Sensex opened at 75,826.68 and climbed steadily through the session. Weekly derivatives expiry triggered short covering, adding momentum to the move.
Eternal led Nifty gainers, surging 5.59 per cent to close at ₹234.45, followed by Tata Steel, which rose 4.42 per cent to ₹195.20. Mahindra & Mahindra gained 2.85 per cent to ₹3,122.50, HDFC Life advanced 2.70 per cent to ₹642.90, and BEL added 2.67 per cent to ₹440.95. On the losing side, Wipro fell 2.06 per cent to ₹191.10, Cipla declined 1.51 per cent to ₹1,280.40, Tata Consumer Products dropped 1.39 per cent to ₹1,077.50, Infosys shed 1.26 per cent to ₹1,234.00, and ITC lost 1.23 per cent to ₹304.45.
Sectorally, Metal, Auto, and Realty led gains, each rising 1–2 per cent, while Nifty IT fell over 2 per cent, hovering near multi-year lows, and Nifty FMCG ended down 0.7 per cent. The Nifty Midcap 100 rose 1 per cent and the Nifty Smallcap 100 gained 0.65 per cent. The BSE advance-decline ratio improved to 1.25, turning positive after four sessions.
A key positive on the day was India VIX, the volatility index, which dropped 8.39 per cent to close at 19.79 — a move that reduced risk premium in options and helped stabilise markets. “The sharp decline in India VIX…accelerated theta decay and reduced the risk premium in options, allowing markets to stabilise after recent turbulence,” said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.
Reliance Industries drew stock-specific attention after it signed a 15-year green ammonia supply agreement with Samsung C&T, providing long-term revenue visibility to its clean energy business. Fino Payments Bank also remained in focus after reporting record deposits of around ₹2,900 crore, though investor caution persisted over ongoing legal issues involving its managing director.
The Indian rupee appreciated 5 paise to close at 92.37 against the US dollar, supported by equity market recovery and strength in Asian currencies. However, a firm dollar index near 100 and crude oil prices hovering close to $100 per barrel continue to strain India’s import bill. “The overall bias remains weak as long as crude sustains at higher levels,” said Jateen Trivedi, VP Research Analyst at LKP Securities, adding that the US Fed policy decision due Wednesday evening would be “a key trigger for the next directional move.”
Analysts remained divided on whether the two-day recovery signals a sustained reversal. “It is premature to conclude that this reversal is sustainable in the short term, as war-related uncertainties persist,” cautioned Vinod Nair, Head of Research, Geojit Investments Limited, though he noted that “from a long-term perspective, deploying funds appears reasonable, given the correction in India’s premium valuations.” Ajit Mishra of Religare Broking described the move as “a mean-reversion move following the sharp decline,” citing elevated crude and persistent FII outflows as overhangs.
Looking ahead, the FOMC rate decision on Wednesday and its commentary on inflation will be closely watched. Technically, analysts place immediate Nifty resistance at 23,700–23,740, with a breakout potentially opening the path to 23,900. On the downside, 23,350–23,400 remains the key support band. For Bank Nifty, which closed at 54,876 — up 462.60 points or 0.85 per cent — resistance is pegged at 55,250–55,300, with support at 54,300–54,400. “Index need to start forming higher high and higher low on a sustained basis to signal a pause in the current downtrend,” noted analysts at Bajaj Broking.