Indian equity markets snapped their four-day losing streak on Tuesday, with Adani stocks leading the charge while technology and consumer goods companies faced significant selling pressure.
The benchmark BSE Sensex closed 169.62 points higher at 76,499.63, while the Nifty 50 gained 90.10 points to end at 23,176.05.
Adani Enterprises emerged as the top gainer, surging 7.05 per cent, followed by Adani Ports which rose 5.25 per cent.
The rally in Adani stocks helped offset losses in the technology sector, where HCL Tech plummeted 8.52 per cent following disappointing quarterly results. Other major gainers included Shriram Finance, NTPC, and Hindalco, advancing 4.92 per cent, 4.73 per cent, and 4.72 per cent respectively.
Market breadth remained strongly positive with 2,867 stocks advancing against 1,096 declining on the BSE. However, 221 stocks hit their 52-week lows compared to 80 reaching 52-week highs, indicating underlying weakness in certain segments.
“Indian equity markets snapped their 4-day losing streak and ended in green on Tuesday,” said Vikram Kasat, Head – Advisory at PL Capital – Prabhudas Lilladher. He noted that while most sectoral indices ended positive, IT and FMCG sectors remained under pressure.
The banking sector showed strength with the Nifty Bank index gaining 1.43 per cent to close at 48,729.15. The financial services sector also performed well, rising 1.44 per cent. Mid-cap stocks demonstrated remarkable resilience, with the Nifty Midcap Select index climbing 1.83 per cent.
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Vinod Nair, Head of Research at Geojit Financial Services, attributed the market rebound to easing domestic CPI inflation, which reached a four-month low of 5.22 per cent. However, he cautioned about rising oil prices and higher 10-year yields that warrant careful monitoring.
In the technology sector, besides HCL Tech’s sharp decline, other major IT firms also faced selling pressure. Infosys dropped 1.23 per cent, while consumer goods giant Hindustan Unilever fell 3.35 per cent. Apollo Hospitals and Titan also featured among the top losers, declining 1.81 per cent and 1.41 per cent respectively.
“Selective buying in banking, telecom, auto, power and metal stocks aided positive sentiment,” noted Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd. However, he warned that “caution will continue to prevail as rupee scaling fresh lows coupled with strong FII fund outflows will remain a major deterrent for markets.”
Looking ahead, market participants remain focused on the upcoming Union Budget, with GDP growth expected to slow to 6.4 per cent in FY25, marking the weakest pace in four years. Policymakers face the challenge of implementing strategic measures to stimulate growth and attract sustained foreign institutional investor inflows.