Indian equity markets reversed early losses to trade significantly higher in afternoon trading on Tuesday, driven by strong gains in metal and banking stocks amid positive global cues.
The benchmark BSE Sensex climbed 684.16 points or 0.87 per cent to 79,466.40, while the broader NSE Nifty rose 200.70 points or 0.84 per cent to 24,196.05 at 2.40 PM, recovering from a cautious start.
Metal stocks continued their upward momentum, with JSW Steel leading the Nifty gainers, surging 4.14 per cent. Other notable gainers included Bajaj Auto advancing 3.47 per cent, Hindalco rising 3.42 per cent, Tata Steel up 3.16 per cent, and Axis Bank gaining 2.82 per cent.
“The markets bounced back up after reaching a critical support level of 23,800, which was a key point for either holding or dropping further,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd. “This upward movement was mainly driven by news that Iran and Israel may be open to ceasefire talks, which, if confirmed, would be a huge positive for the market.”
The banking and financial services sectors showed robust performance, with the Nifty Bank index rising 923.90 points or 1.80 per cent to 52,139.15. The Nifty Financial Services index posted even stronger gains, climbing 468.35 points or 1.98 per cent to 24,128.60.
Market breadth remained positive, with 2,430 stocks advancing compared to 1,464 declines on the BSE. Additionally, 199 stocks reached their 52-week highs, while only 22 touched their 52-week lows. The market saw 367 stocks hitting upper circuit limits and 193 touching lower circuits.
Among the laggards, Adani Ports declined 1.86 per cent, followed by Trent dropping 1.41 per cent, ITC falling 1.05 per cent, Bharti Airtel slipping 0.97 per cent, and Asian Paints down 0.94 per cent.
The broader market indicators showed moderate gains, with the Nifty Next 50 rising 318.20 points or 0.46 per cent to 69,736.45, while the Nifty Midcap Select index added 54.75 points or 0.45 per cent to reach 12,354.40.
“Speculation that Trump might win the upcoming U.S. election, and the Federal Reserve could cut interest rates by 0.25% for a second time” are helping boost market confidence, Tapse added. However, he noted that “a true sign of strength would be if the market closes above the 24,380-24,400 range.”
The market’s positive momentum came despite early caution over U.S. presidential election uncertainties and continued foreign fund outflows. The recovery was supported by strong buying in metal and banking stocks, offsetting the weakness in consumer and telecom sectors.
Trading activity remained robust with 4,015 stocks being traded on the BSE, while 121 stocks remained unchanged from their previous closing prices.
