Indian equity markets extended their gains for a second consecutive session on Tuesday, with benchmark indices Sensex and Nifty closing significantly higher. The positive momentum came just a day before the Reserve Bank of India's (RBI) monetary policy committee is set to announce its latest decision.
Market Highlights and Key Movers
The 30-share BSE Sensex advanced by 685 points, settling at 73,067, while the broader NSE Nifty 50 climbed 220 points to close at 22,776. This surge pushed the market capitalization of BSE-listed firms to Rs 473.61 lakh crore.
Leading the rally were key sectors including capital goods, banking, and pharmaceuticals. The BSE Capital Goods index rose by 1,333 points to 75,749, the pharma index gained 552 points, and the BSE Bankex ended 330 points higher at 62,118.
Top performers on the Sensex included shares like Trent, Kotak Mahindra Bank, Hindustan Unilever (HUL), Reliance Industries, IndiGo, Eternal, and Asian Paints, which saw gains of up to 13%. Conversely, Tech Mahindra, Titan Company, Bajaj Finance, and ITC were among the top losers, declining by up to 2.3%.
Analyst Insights and Global Influences
Sunny Agrawal, Deputy Vice President - Fundamental Research at SBI Securities, noted that supportive global cues contributed to the market's upward trend. He highlighted strong business updates from companies like Honasa Consumer, Meesho, Trent, and Dabur, which closed higher by 8%, 6%, 12%, and 3% respectively.
Global market signals turned favourable as Brent crude prices eased below the $100-per-barrel mark, supported by stable oil prices and increased crude exports from West Asia. This decline in energy prices offers potential relief on the inflation front, providing a supportive backdrop for equities. US Futures also traded 0.5% higher, and the US 10-year yield slightly receded from its morning highs, further bolstering the Indian market.
Ajit Mishra, SVP – Research at Religare Broking, commented that markets continued their recovery on the weekly expiry day, with benchmarks gaining nearly a percent. He pointed to easing crude prices and encouraging Q2 business updates as key factors. Mishra identified the 22,800–22,850 zone as an immediate hurdle for Nifty, with broader resistance around 23,000-23,200, while 22,600-22,400 serves as key near-term support.
Anticipation for RBI Policy
Domestic investors are now keenly awaiting the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting outcome, scheduled for Wednesday. Beyond the policy decision itself, the RBI’s commentary on growth, inflation, and the broader economic outlook will be closely scrutinized.
The policy meeting takes place against a backdrop of ongoing geopolitical tensions in West Asia, which continue to add uncertainty to commodity markets. Additionally, recent rate hikes by the US Federal Reserve have raised concerns about tighter global financial conditions, potentially influencing capital flows, currency movements, and investor sentiment in emerging markets like India.
Previous Session Performance
In the preceding session, the Sensex had climbed 472.77 points or 0.66 per cent to close at 72,382.47, and the NSE Nifty50 index had risen 133.80 points or 0.60 per cent to end at 22,555.75.