Sensex Ends 208 pts Up, Nifty Reclaims 25,900; Auto, Metal Stocks Shine
Benchmark indices Nifty and Sensex continued their bullish trend for the second consecutive session on Tuesday, buoyed by a robust rally in auto and metal stocks that significantly enhanced market sentiment. The broader market also outperformed, with midcap and smallcap indices rising by 0.5% and 0.35%, respectively.
Market Highlights
– The BSE Sensex surged by 208 points, finishing at 84,274, a 0.25% increase.
– The Nifty 50 gained 68 points, closing at 25,935, up 0.26%.
– Key gainers included:
– Eternal: Up by over 5%, securing the top position on the Sensex.
– Tata Steel: Increased by 2.82%.
– Mahindra & Mahindra and Tech Mahindra: Both rose over 1.5%.
– Notable losers included:
– HCL Tech, Bajaj Finance, Bharti Airtel, and Adani Ports: Each fell by up to 2%.
Expert Insights on Market Sentiment
According to Vinod Nair, Head of Research at Geojit Investments, the day’s market performance was driven by a positive US trade agreement and favorable signals from key Asian markets. He noted that:
– A significant resurgence in Foreign Institutional Investor (FII) inflows, combined with a strengthening rupee, is enhancing investor confidence.
– Despite instances of profit-booking across sectors, the easing of tariff concerns contributes to an optimistic outlook.
– Market trajectory is now closely linked to upcoming Q3 earnings, which have been mixed and underwhelming thus far.
– Investors are keenly observing how recent fiscal and monetary policies will impact earnings momentum in upcoming quarters.
Global Market Trends
Asian equities were on an upward trajectory on Tuesday, spurred by:
– Tokyo markets extending their rally following a decisive electoral victory by Japanese Prime Minister Sanae Takaichi.
– MSCI’s Asia-Pacific index (excluding Japan) climbed by 0.6%, while Nikkei 225 rose 2.3%, marking a fresh high for the third consecutive session; the yen also appreciated for the second day in a row.
European markets opened with mixed results as investors evaluated a plethora of corporate earnings announcements:
– The Stoxx index remained mostly flat, lacking a clear trend.
– Germany’s DAX reported a 0.4% increase.
– Meanwhile, U.S. stock futures were trading slightly lower, with Dow futures down by 25 points (about 0.04%).
Commodity Market Overview
Oil prices edged up on Tuesday, amid concerns over potential supply disruptions:
– Brent crude futures rose by 29 cents (or 0.4%) to $69.33 per barrel at 0916 GMT.
– U.S. West Texas Intermediate crude gained 22 cents (or 0.3%) to $64.58 per barrel.
Currency Exchange Update
The Indian rupee appreciated by 0.2%, closing at 90.5775 against the U.S. dollar, compared to the previous close of 90.7575.
In summary, the market’s positive momentum, driven largely by the auto and metal sectors, alongside supportive global trends, appears to have bolstered investor confidence despite fluctuating earnings reports. As circumstances evolve, all eyes will be on how upcoming economic indicators and earnings will influence market trends.