The Diwali spirit seems to have taken over Dalal street, as the markets closed on a positive note on Tuesday. Despite broader economic distress, a strong Q2 earnings season and signs of revival in foreign investor inflows have boosted Indian investor sentiment.
Nifty 50 rose 1.58 per cent to close at 23,810.85. The BSE Sensex gained 1.62 per cent, settling at 76,917.85.
The gains contrasted with global markets. Asian markets, except the Hang Seng index, closed lower, after technology stocks slipped ahead of the US midterm elections. The US markets were also led down by tech stocks, with concerns about AI-led spending. However, this created a favourable environment as analysts view India as an alternative AI solutions market.
Though Brent crude prices increased following reports of a US attack on Iran's Qeshm Island, it hovered around $106 per barrel, in a relatively narrow range.
Foreign investors also seem to be back in action, being net buyers in four of the past five sessions.
HUL, Bharti Airtel, HDFC Bank, Asian Paints and ICICI Bank led the BSE Sensex while Trent, Tata Steel, NTPC, and State Bank of India lagged behind.
HUL was a major winner, rising over 4 per cent, after posting its strongest Q2 growth in several quarters. Jefferies and Nomura maintain BUY ratings after the company limited pressure on its profit margins through a combination of price hikes and limited promotional spending. However, the stock has fallen 8 per cent over the last three months.
State Bank of India shares fell 1.77 per cent after failing to meet expectations. Operating expenses rose 9.6% year on year, and the cost-to-income ratio worsened to 49.82 per cent, from 46.71 per cent at the end of June 2026. Compared with private lenders, government banks are also vulnerable to swings in bond yields.
The Nifty 50 was hauled up by HDFC and ICICI banks. The share prices rose by 3.6 per cent and 2.7 per cent, respectively. According to Jefferies, bank deposit growth is expected to accelerate to 16 per cent in FY27, supported by inflows through foreign currency non-resident bank (FCNR-B) deposits. Anup Bagchi’s new term as MD and CEO at HDFC also began last week.
