The Nifty and Sensex indices traded higher on Tuesday, continuing a relief rally after an 8-week losing streak. Declining crude oil prices and global market gains, along with positive Q2 updates from multiple companies, eased trading in the Indian stock market.
Brent crude oil price eased to $100 per barrel. Globally, Asian markets traded well as crude oil supply tensions cooled and AI stock gains helped NASDAQ close higher. However, elevated global bond yields, FII selling, and ongoing Middle East tensions keep investor sentiment cautious, signalling the green streak might not last long.
Sensex gained over 360 points to reach a high of 72,747.14 from the previous close of 72,382.47. Nifty 50 traded above the 22,600 level, rising by roughly 120 points to reach an intraday high of 22,677.95 from a previous close of 22,555.75.
Banking stocks, which have the heaviest weightage and metal stocks drove the Nifty gain. JSW Steel, Tata Steel and Hindalco were faring well, with gains from 0.4 to over 1 per cent. The Nifty Bank index was particularly strong, reaching a high of 55,074.45 from a previous close of 54,714.10.
Kotak Bank, HDFC Bank, Axis Bank, IndusInd Bank, and Bank of Baroda stocks rallied as brokerages highlighted strong Q2 performance. A predicted 0.25 bps rate hike after the RBI’s MPC meeting is expected to drive up profit margins. Strong FCNR(B) inflows and a positive outlook from HDFC's new CEO have boosted investor sentiment for the Indian banking sector.
Driven by strong Q2 performance and revenue growth, Westside operator Trent was a major winner in the Sensex, gaining over 11 per cent to trade at ₹2872.95. Kotak Bank, Reliance, Hindustan Unilever and Axis Bank were the other major winners among the Sensex lot.
Even as all other sectors traded green, the IT sector lagged behind, with Infosys, HCL Tech, Tech Mahindra, and TCS among the main losers in the Sensex index. Nifty IT traded red, falling to an intraday low of 27,946.30.
