After a sharp fall that shook investor confidence at the start of the week, the Indian stock market staged a recovery on Tuesday. A day after witnessing their worst single-day drop in 10 months, both Sensex and Nifty rebounded strongly, lifted by positive global cues and hopes of a rate cut in the upcoming Reserve Bank of India (RBI) policy meet.
The Sensex closed the day at 74,227.08, up 1,089.18 points or 1.49%, while the Nifty ended higher at 22,535.85, gaining 374.25 points or 1.69%. The rally was broad-based, with all major indices trading in the green throughout the session.
The Nifty Bank also joined the party, ending the day at 50,511, up by 650.90 points or 1.31%. Meanwhile, the Nifty Smallcap 100 and Midcap 100 indices also saw healthy gains.
Broad based buying lifts market mood
The rally was not just limited to headline indices as gains were seen across the board. On the Nifty, top performers included Jio Financial, Shriram Finance, Titan Company, Cipla, and Bharat Electronics, while Power Grid was the only stock in the red. All sectoral indices closed in positive territory, with Capital Goods, Consumer Durables, FMCG, Oil & Gas, PSU banks, Realty, Telecom, and Media stocks climbing between 2% to 4%.
This turnaround came on the back of positive signals from global markets. Asian stocks opened higher, tracking a mild recovery in US equity futures.
Back home, the RBI’s policy decision due on April 9 is also being closely watched. With inflation under control and growth concerns looming, many analysts expect a 25 basis point cut in repo rate. In short, after Monday’s storm, Tuesday brought a welcome ray of sunshine to Dalal Street.