Benchmark equity indices extended their gains for the second consecutive session on Tuesday, rising about 1%, as Brent crude prices traded below $100 per barrel after the G7 stockpile release eased concerns over global supply.
On Monday, the Sensex and Nifty rose about 0.66% each, snapping a four-day losing streak. The rebound came after an eight-week losing run, the longest in 25 years (since 2020).
On Tuesday, the Sensex jumped 685.34 points, or 0.95%, to close at 73,067.81, moving above the 73,000 mark, while the Nifty advanced 220.35 points, or 0.98%, to end at 22,776.10.
Investors’ wealth increased by Rs 4.54 lakh crore on Tuesday and by Rs 6.65 lakh crore over the past two sessions.
“Markets extended their recovery on the weekly expiry day, with the benchmarks gaining nearly a percent as easing crude prices and encouraging Q2 business updates supported sentiment,” said Ajit Mishra, SVP – Research, Religare Broking.
Global cues turned somewhat supportive as Brent crude slipped below $100 per barrel, aided by steady crude supplies and increased oil exports from West Asia. Back home, market participants will closely track the outcome of the RBI Monetary Policy Committee (MPC) meeting scheduled for Wednesday, along with its commentary, given the challenging macroeconomic backdrop marked by persistent West Asia tensions and the US Fed raising rates, signalling a shift towards tighter global monetary conditions, Mishra added.
“Crude oil prices slipped below the $100 mark after a large G7 stockpile release and alternative supplies through pipelines helped offset disruptions to vessel movements through the Strait of Hormuz. Coupled with strong Q2 business updates from financials and retail, along with supportive global cues, the decline in oil prices improved investors’ sentiment and supported a rebound from oversold levels,” said Vinod Nair, Head of Research, Geojit Investments.
Domestically, attention now shifts to the Q2 earnings season for a silver lining amid weak sequential expectations due to elevated input costs, Nair added.
Market breadth was positive, with 2,823 gainers against 1,555 losers on the BSE.
The broader market also participated in the rally, with both the midcap and smallcap indices gaining between 1% and 1.5%.
Foreign portfolio investors sold shares worth Rs 2,961.30 crore, while domestic institutional investors bought shares worth Rs 5,088.92 crore, according to provisional data from the exchanges.
Sectorally, buying in private banking, consumer durables, pharma and energy stocks supported the recovery, with these sectors emerging among the stronger performers, while IT and realty lagged.
With a gain of 12.8%, Trent led the Sensex gainers, followed by Kotak Mahindra Bank, Hindustan Unilever, Reliance Industries and IndiGo.
In contrast, Tech Mahindra, Titan Company, Bajaj Finance, ITC and UltraTech Cement were the top Sensex losers.
Meanwhile, shares of the exchanges, BSE and NSE, as well as brokerages gained after Reuters reported that the Securities and Exchange Board of India is considering a partial rollback of derivatives-market rules.