Benchmark equity markets kicked off the new financial year on a strong note, with benchmark indices ending sharply higher in a broad-based rally on Tuesday, supported by improving global cues and a visible shift toward cyclical stocks.
The BSE Sensex rose 1,186.77 points, or 1.65%, to close at 73,134.32. The Nifty 50 gained 348 points, or 1.56%, to settle at 22,679.40, holding firmly above the 22,600 mark.
The rally was broad-based, with mid- and small-cap stocks outperforming large caps, pointing to improving risk appetite. Sectorally, cyclicals led the gains, with banking, metals, chemicals and realty stocks emerging as key outperformers, while defensives took a relative backseat.
Among individual stocks, InterGlobe Aviation surged about 6%, standing out as one of the top gainers of the session. The move comes amid easing concerns around aviation turbine fuel costs and a steady demand outlook, which have supported sentiment in the aviation space.
According to Vinod Nair, Head of Research at Geojit Investments Limited, markets began FY27 on a firm footing, aided by improving global sentiment. He noted that comments from Donald Trump hinting at a possible resolution to the West Asia conflict lifted investor confidence.
Nair added that a stabilising rupee and softening crude oil prices further supported the rally, while sectoral rotation into cyclicals underscored expectations of stronger economic activity. However, he pointed out that elevated bond yields and intraday volatility kept gains in check, preventing a sharper upmove.
Despite the positive undertone, he cautioned that markets remain sensitive to geopolitical developments, and any sudden shifts could lead to renewed volatility in the near term.