On Tuesday, key equity indices in India experienced a significant boost fueled by positive market sentiments. The NSE Nifty 50 surged by 325 points, marking a 1.45% increase to close at 22,834, while the BSE Sensex soared by 1,131 points, or 1.53%, finishing at 75,301. This upward trend signals a renewed confidence among investors amid a fluctuating market landscape.
Strong Buying Activity from Foreign Institutional Investors (FIIs)
A notable factor contributing to this rally was the Foreign Institutional Investors (FIIs) purchasing equities worth ₹1,463 crore, marking their first buying spree in March. Despite this positive activity, FIIs remain net sellers for the month, having offloaded over ₹24,000 crore worth of equities so far. This follows a staggering outflow exceeding ₹3 lakh crore over the past five months. Meanwhile, Domestic Institutional Investors (DIIs) also played a role by acquiring equities worth ₹2,028 crore during the day’s trading.
Sector Highlights: Realty and Banking Lead Gains
Among the sectoral indices, Nifty Realty emerged as the top performer, climbing 3.16% during Tuesday’s session. Following closely was the Nifty Consumer Durables, which gained over 2.6%, closing at 35,573.45. The Nifty Bank also performed well, shooting up by 960 points, or 1.99%, to finish at 49,314.50. In addition, the BSE Midcap index rose nearly 1,200 points, showcasing a robust increase of 2.73%, closing at 45,031.
Broader Market Trends
In the wider market context, both small-cap and mid-cap stocks wrapped up the day positively, reflecting a strong market breadth favoring bullish sentiments. The India VIX, a measure of market volatility, eased by 1.5%, settling at 13.21.
- Top Gainers in Nifty 50:
- ICICI Bank: 3.35%
- L&T: 3.07%
- Shriram Finance: 3%
- Mahindra & Mahindra (M&M): 2.95%
- Tata Motors: 2.69%
Conversely, some stocks like Bajaj Finserv, Tech Mahindra, and Bharti Airtel faced declines within the Nifty 50.
Expert Insights on Market Recovery
Vinod Nair, Head of Research at Geojit Financial Services, commented on the resurgence of national benchmarks, stating, “The market’s robust recovery can be attributed to favorable global trends coupled with positive domestic indicators. Enhanced retail sales figures from the U.S. and China have significantly bolstered investor confidence, leading to outperformance in mid- and small-cap stocks across major sectors.”
This market activity suggests a potential turning point, as investors remain cautiously optimistic about future trends in the Indian equity landscape.
