Mumbai — Indian equity benchmarks closed sharply higher Tuesday, supported by gains in pharmaceutical, private banking and oil and gas stocks as investors awaited the Reserve Bank of India’s policy decision.
The Sensex rose 685.34 points, or 0.95%, to close at 73,067.81, while the Nifty gained 220.35 points, or 0.98%, to finish at 22,776.10.
Buying in heavyweight stocks helped sustain positive sentiment through the session, while investors remained focused on the RBI announcement for signals on interest rates, liquidity and the central bank’s economic outlook.
Among Nifty constituents, Trent, BSE and Kotak Mahindra Bank were among the top gainers and helped drive the broader market higher.
The rally extended beyond large-cap stocks. The Nifty MidCap index advanced 1.08%, while the Nifty SmallCap index rose 1.56%.
Pharmaceutical and chemical stocks led sectoral gains, with the Nifty Pharma index emerging as the best-performing sectoral gauge, followed by the Nifty Chemical index.
Information technology stocks moved in the opposite direction, with the Nifty IT index ending as the biggest sectoral loser amid profit-taking.
Market analysts said the near-term technical picture had improved. A sustained move above 22,800 could push the Nifty toward 23,000, while immediate support is seen around 22,600, followed by 22,500.
Analysts also noted that momentum indicators were showing signs of improvement, with selling pressure appearing to ease.
Lower crude oil prices provided additional support to domestic equities and helped the benchmarks post gains for a second consecutive session.
Despite the rebound, analysts said investors remained cautious because of lingering global and macroeconomic uncertainties, with the RBI policy outcome expected to play a key role in determining the market’s near-term direction. (Source: IANS)
