Benchmark indices resumed their winning streak on Tuesday after a brief pause, supported by favourable global cues ahead of the US Federal Reserve’s rate-cut announcement.
The Sensex rose 594.95 points, or 0.73%, to close at 82,380.69, its highest level in nearly two months. On the weekly expiry day, the Nifty rose 169.90 points, or 0.68%, to end above the 25,200 mark for the first time in three months, at 25,239.10. So far in September, the Sensex and Nifty have rallied 3.22% and 3.33%, respectively.
Global cues and domestic optimism lift sentiment
“The domestic market sustained its recovery trend, supported by favourable global cues, expectations of a 25-bps rate cut in the upcoming US Fed policy decision, and renewed optimism over the resumption of India-US trade negotiations,” said Vinod Nair, Head of Research, Geojit Financial Services.
He added that going forward, investor focus will remain on trade discussions, while strong domestic macro fundamentals are likely to drive upward earnings revisions, supporting current valuations and limiting downside risks.
“Markets staged a strong advance on the weekly expiry day of Nifty contracts, gaining over half a percent. The tone was upbeat from the start, with consistent buying in heavyweights across sectors driving the index higher through the session,” said Ajit Mishra, SVP, Research, Religare Broking. From a technical perspective, the Nifty has tested the 25,250 mark, aided by broad-based participation, with the banking index crossing its hurdle at 55,000.”
Sectoral and stock-wise action
Market breadth remained positive, with 2,540 gainers versus 1,577 losers on the BSE. The broader indices also participated in the rally, with BSE Midcap and BSE Smallcap gaining 0.62% and 0.66%, respectively. Investor wealth rose by ₹2.83 lakh crore, taking the total market capitalisation on the BSE to ₹462.88 lakh crore.
Foreign portfolio investors purchased shares worth Rs 308.32 crore and domestic institutional investors bought shares worth Rs 1,518.73 crore, as per provisional data by the BSE.
Barring FMCG, all sectoral indices ended in the green. Services, telecom, auto, industrials, and TECK were the top gainers, rising up to 1.67%.
Among the Sensex constituents, Kotak Mahindra Bank, L&T, M&M, Maruti Suzuki, and Bharti Airtel were the top performers, advancing up to 2.64%, while Asian Paints and Bajaj Finance were the only laggards, slipping up to 0.78%.