MUMBAI— Indian equity markets snapped a four-session losing streak on Tuesday, buoyed by positive global cues, easing retail inflation, and sustained foreign fund inflows.
The benchmark BSE Sensex closed 317 points higher, or 0.39 percent, at 82,570.91. The NSE Nifty also registered solid gains, climbing 113.5 points to settle at 25,195.80, up 0.45 percent.
Analysts attributed the rebound to improving market sentiment driven by a combination of domestic and international factors.
“Domestic inflation has fallen to multi-year lows, strengthening expectations of a further rate cut by the RBI – potentially accelerating future economic growth, which is currently showing signs of improvement,” said Vinod Nair of Geojit Financial Services.
Broader indices also advanced, with the Nifty MidCap and Nifty SmallCap indices each rising around 0.95 percent, reflecting widespread buying across the market.
All sectoral indices on the Nifty closed in positive territory. The Nifty Auto index led the charge with a 1.5 percent gain, followed by the Pharma and Healthcare indices, which each climbed over 1 percent. Gains of up to 1 percent were also seen in banking, energy, financial services, IT, metal, PSU bank, realty, consumer durables, and oil & gas sectors.
Adding to the optimism, the India VIX — a measure of market volatility — fell 4.17 percent to 11.48, signaling lower investor anxiety.
Foreign institutional investors remained net buyers, reinforcing the recovery trend. Meanwhile, the Indian rupee appreciated against the US dollar, snapping a two-day decline. Analysts linked the rebound to renewed confidence in domestic equities and a softer US Dollar Index.
“Market participants are keenly awaiting the release of pivotal US inflation data later today, as it’s expected to heavily influence future monetary policy decisions and deliberations over Federal Reserve leadership, especially amidst prevailing trade uncertainties,” said Dilip Parmar of HDFC Securities. (Source: IANS)
