Indian equity markets witnessed a strong rally on Tuesday, driven by renewed optimism over India-US trade negotiations and expectations of a rate cut by the US Federal Reserve.
The BSE Sensex closed at 82,380.69, up 594.95 points (0.73%), while the NSE Nifty ended at 25,239.10, gaining 169.90 points (0.68%). The Sensex touched an intraday high of 82,443.48, after opening slightly higher at 81,852.11 compared to the previous close of 81,785.74.
Market experts said the uptrend was supported by value buying across sectors, excluding FMCG, amid positive global cues.
“Domestic equities sustained their recovery trend on the back of expectations of a 25-basis-point cut in the upcoming US Fed policy and optimism around resumed India-US trade discussions. Auto and consumer durable stocks led the rally, supported by festive season demand and new GST rate rollout,” said Vinod Nair, Head of Research, Geojit Financial Services.
Among Sensex gainers were Kotak Bank, Mahindra & Mahindra, L&T, Maruti Suzuki, Bharti Airtel, Tata Steel, Axis Bank, HCL Tech, NTPC, TCS, SBI, PowerGrid and others. Bajaj Finserv and Asian Paints were among the top losers.
Sector-wise, Nifty Auto surged 1.44%, Nifty IT rose 0.86%, Nifty Bank gained 0.47%, while Nifty FMCG ended lower. Broader indices also closed in positive territory, with Nifty Small Cap 100 up 0.95% and Nifty Midcap 100 higher by 0.54%.
Meanwhile, the rupee appreciated 0.13%, trading at 88.05 against the dollar, supported by rate cut hopes and positive sentiment from trade talks.
Analysts said investor focus will remain on trade discussions, while robust domestic fundamentals are expected to support valuations and earnings outlook.
-IANS
