Indian benchmark indices ended higher on Tuesday, reversing early losses as upbeat global cues and sectoral strength in IT, auto, metal, and FMCG stocks lifted market sentiment. The recovery mirrored gains in global equities after the US Senate passed legislation to end the nation’s longest-ever federal shutdown, easing investor concerns over global growth.
The S&P BSE Sensex climbed 335.97 points to close at 83,871.32, while the NSE Nifty50 advanced 120.60 points to settle at 25,694.95. Both benchmarks touched their intraday highs by the closing bell, signalling renewed bullish momentum following a subdued start to the session.
Vinod Nair, Head of Research at Geojit Investments, said the rebound was driven by improving global sentiment and strong domestic earnings. “Markets recovered smartly and closed at the day’s high, supported by global cues as the US Senate passed a bill to end the longest-ever federal shutdown. The Q2 results season is nearing its end and is expected to conclude positively, with strong performances from the broader market,” he said.
Among the top performers, Bharat Electronics surged 2.52%, followed by Mahindra & Mahindra, which gained 2.40%. Adani Ports rose 2.11%, HCL Technologies advanced 1.89%, while Infosys and Eternal added 1.44% each, helping the indices stay firmly in the green.
However, losses in select financial heavyweights capped broader market gains. Bajaj Finance slumped 7.38%, becoming the biggest drag of the day, while Bajaj Finserv declined 6.26%. Tata Motors, Kotak Mahindra Bank, Power Grid, and Tata Steel also closed marginally lower.
Market participants are now turning their focus to upcoming domestic inflation data. Analysts expect consumer price inflation to show further moderation, largely due to easing food prices, which could bolster the case for additional monetary policy easing by the Reserve Bank of India.
“Investors are eyeing the inflation numbers closely. Continued moderation could open space for policy easing by the RBI. Earnings are likely to show a strong rebound in the third quarter, supported by domestic growth drivers, although much will depend on the finalisation of a trade deal with the US,” Nair said.
Overall, the session reflected cautious optimism, with traders betting on sustained global recovery and domestic macroeconomic resilience to support further gains in the near term.
