closed higher on Tuesday in a broad-based recovery led by and financial stocks, after introduced operational guidelines for its aimed at boosting foreign currency inflows and easing dollar liquidity conditions.
Investor sentiment also improved after a pause in hostilities between Israel and Iran eased geopolitical concerns and pushed crude oil prices lower, supporting risk appetite across global markets. Gains in Asian equities and a technology-led recovery on Wall Street further aided domestic equities.
In addition, a rebound in the rupee against the dollar further lifted market mood; it ended at 95.35 per dollar on Tuesday against previous close of 95.71.
The settled 394.50 points or 0.54 per cent higher at 73,918.76 after touching an intraday high of 74,035.41. The gained 119.10 points or 0.52 per cent to close at 23,242.10.
Markets had come under pressure in recent sessions due to escalating geopolitical tensions and persistent foreign institutional investor outflows. Tuesday’s recovery, however, remained cautious due to concerns over elevated global bond yields, evolving macroeconomic uncertainties, weak monsoon forecasts and rising inflation.
Vinod Nair, head of research at Geojit Investments, noted that market sentiment remains fragile, while investors remain focused on upcoming US inflation data for cues on Fed policy and global liquidity
Broader markets outperformed the headline indices, with midcap and smallcap indices advancing 1.35 per cent and 1.69 per cent, respectively. Among sectors, PSU banks led the rally, followed by financial services and private banks. , while IT and media stocks ended in the red.
Banking stocks remained the key drivers of the rally today after the RBI allowed banks to mobilise foreign currency deposits at lower costs through concessional forex swap facilities. The central bank also provided CRR and SLR exemptions for eligible FCNR(B) deposits, a move seen improving liquidity and supporting banking sector margins.
IT stocks remained under pressure amid concerns over slowing global technology spending, uncertainty around AI-led disruption in traditional outsourcing models and expectations of prolonged higher US interest rates, said Hariprasad K, SEBI-registered research analyst and founder of Livelong Wealth.
IndiGo, Jio, SBI – Top gainers
Among the Nifty 50 stocks, IndiGo, Jio Financial Services, SBI, Axis Bank and ICICI Bank emerged as the top gainers. Titan, ONGC, NTPC, Power Grid and Eternal were among the top laggards.
Market breadth remained firmly positive, with the advance-decline ratio favouring advancing stocks.
On the BSE, 2,782 stocks advanced, while 1,423 declined and 193 remained unchanged out of 4,398 traded stocks. As many as 107 stocks hit their 52-week highs, while 81 touched 52-week lows. In addition, eight stocks hit the upper circuit limit, while five stocks were locked in the lower circuit.
Defence stocks lift
In the midcap space, PI Industries, Motilal Oswal Financial Services, Bank of India, GVT&D and Indian Bank rallied 4-7 per cent. Info Edge, Indus Towers, Vodafone Idea and Oil India declined up to 2 per cent.
Among smallcaps, Data Patterns surged 10 per cent, while Pine Labs, MRPL, Ola Electric and IDBI Bank also posted strong gains. Tata Technologies, CESC, Aptus Value Housing Finance and Zensar Technologies fell 1-4 per cent.
Easy Trip Planners and Morepen Laboratories outperformed on the BSE, rallying 14-18 per cent, while Kitex Garments dragged the most by 10 per cent.