MARKET CLOSE UPDATE
Indian equity benchmarks ended Tuesday on a strong note, overcoming early volatility initiated by the Delhi blast incident. The Sensex increased by 336 points (0.40%) to close at 83,871, while the Nifty 50 rose 120 points (0.47%) to finish at 25,695. The market showed remarkable resilience as the Sensex rebounded a significant 747 points from its day’s low of 83,124, indicating strong buying interest at lower levels.
SECTORAL PERFORMANCE
IT, auto, and metal stocks led the market’s upward movement, with the telecom index rising 1.5% and the IT sector gaining 1%. The Nifty Bank index climbed 200 points (0.35%) to 58,138, showcasing strength in financial stocks. However, the realty and FMCG sectors faced challenges, closing slightly lower. The Nifty Midcap outperformed with a 0.20% gain, while the Smallcap index saw a slight dip of 0.09%.
WHAT DROVE TODAY’S RALLY
Global factors played a significant role in today’s market performance. U.S. markets surged overnight, with the S&P 500 gaining 1.54% and the Nasdaq Composite rising 2.27%, driven by strong AI stock performance and progress towards ending the federal shutdown. Asian markets followed this trend, with South Korea’s KOSPI up 2.24% and Japan’s Nikkei 225 increasing by 0.56%. Additionally, Donald Trump’s indication of a potential “fair trade deal” with India helped ease trade concerns.
KEY HIGHLIGHTS
The Q2 earnings season is nearing its end and is expected to conclude positively, with many broader market stocks delivering better-than-expected results. MOIL announced a 41% increase in Q2 net profit, reaching Rs 70.4 crore. On the other hand, the Physicswallah IPO saw a lukewarm response with just 0.06x subscription on the first day.
TECHNICAL OUTLOOK
The Nifty has formed a bullish candle characterized by higher highs and higher lows, suggesting continued buying momentum. The index is expected to maintain its position above the 25,200-25,400 support zone and gradually aim for the immediate resistance of 25,850, with the 52-week high of 26,100 potentially within reach in the coming weeks.
BOTTOM LINE
Markets showed strong resilience despite geopolitical concerns, closing near the day’s highs with broad-based participation. Positive global cues, earnings optimism, and prospects of a trade deal contributed to keeping the bulls in control.