Indian stock markets rose sharply on Tuesday, with the Sensex and Nifty each gaining close to 2%. Lower crude oil prices, growing talk of a possible change to long-term capital gains tax, and renewed interest from foreign investors all lifted sentiment.
The Sensex climbed 1,225 points to close at 76,918. The Nifty 50 rose 370 points to finish at 23,811. The rally added nearly Rs 4 lakh crore to the market value of companies listed on BSE, taking the total to about Rs 487 lakh crore.
Analysts said the rebound was broad-based. Vinod Nair, Head of Research at Geojit Investments, said the recovery could last only if company earnings keep improving, foreign investors keep buying and oil and global bond yields stay under control. He said geopolitical developments and the US Federal Reserve’s policy path would remain the key outside factors to watch. Strong July-September quarter results had also supported confidence in domestic growth, while financial and consumption-linked sectors led the gains.
Global cues
US stocks also closed higher. The S&P 500 and the Nasdaq rose as crude prices fell further ahead of the US midterm election results. Apple, however, slipped 2% after warning that rising memory chip costs would squeeze its margins in the holiday quarter. Chip stocks were among the strongest performers. Nvidia rose 2.7% after four straight sessions of losses, and the broader Philadelphia chips index gained 2.7%. AMD rose 4% ahead of its quarterly results, due after the US market closed.
European markets reversed course and moved higher. The pan-European STOXX 600 index gained 0.13% to 650.3 points. The move followed comments from US President Donald Trump that Washington would stop providing $4 billion in funding to Israel after this year ends. Brent crude futures fell 2.9% to $101.75 a barrel. Oil prices have swung sharply this week on mixed signals from the US and Iran about ending the war in the Middle East.
Most active stocks
By turnover on the NSE, Reliance Industries led with trades worth Rs 5,485 crore. It was followed by Bharti Airtel at Rs 3,810 crore, HDFC Bank at Rs 3,078 crore, SBI at Rs 2,759 crore, ICICI Bank at Rs 2,480 crore, BSE at Rs 2,192 crore and MCX India at Rs 1,631 crore.
By volume, Trident topped the list with 27.4 crore shares traded. Vodafone Idea followed with 24.7 crore shares, then Yes Bank with 16.15 crore, JP Power with 7 crore, Suzlon Energy with 6.34 crore, Groww with 5.32 crore and Ola Electric with 5.31 crore.
Buying and selling interest
CarTrade Tech, Marico, Balrampur Chini, MCX India, Trident, Angel One and Aegis Logistics drew strong buying interest from market participants.
On the NSE, several stocks hit 52-week highs, including MCX India, Welspun India, Bosch, Shyam Metalics, IHCL, Eternal and Divi’s Labs.
Selling pressure was concentrated in KEC International, AIA Engineering, GE Shipping, NLC India, Biocon, Tata Investment Corp and NALCO. KEC International, Jain Resource Recycling, REC, PB Fintech, Zee Entertainment Enterprises, Escorts Kubota and DOMS Industries touched 52-week lows.
Market breadth
Of the 3,713 stocks that traded on the NSE on Tuesday, 2,127 advanced and 1,477 declined, while 109 ended unchanged. The numbers point to a market where buyers had the upper hand across a wide range of companies, not just a handful of heavyweights.
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