Indian equities extended their recovery on Tuesday, helped by softer crude oil prices, a pullback in US Treasury yields and fresh buying from foreign institutional investors (FIIs). Improving global signals eased some of the economic worries that had weighed on the market in recent sessions.
The Nifty 50 gained 370 points, or 1.58%, to settle at 23,811. The BSE Sensex jumped 1,225 points, or 1.62%, to close at 76,918.
Buying spread beyond the large caps. The Nifty Midcap 100 rose 1%, while the Nifty Smallcap 100 advanced 0.31%, pointing to a broad improvement in sentiment.
Sector moves
FMCG stocks led the gains, with the Nifty FMCG index climbing close to 4%. The Nifty Realty index added more than 2%. The rally was not uniform, though. The Nifty PSU Bank index bucked the trend and fell more than 1%.
Breadth stays positive
Market breadth on the NSE was strongly positive. Of the 3,713 stocks traded, 2,127 advanced and 1,477 declined, while 109 ended unchanged.
Technical outlook
Vatsal Bhuva, Technical Analyst at LKP Securities, said the Nifty has strengthened its technical position. The index reclaimed its 100-day moving average on the daily chart, after moving above its 50-day moving average in the previous session. It has also broken above its previous swing high, which Bhuva said signals improving bullish momentum.
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