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The Indian stock markets staged a strong comeback on Tuesday, snapping a six-day losing streak fueled by a combination of positive factors. The BSE Sensex closed the day at 81,634.8, up 584.81 points or 0.72%, while the Nifty50 index ended at 25,013.15, gaining 217.38 points or 0.88%. This rally came after investors digested the results of the recent Assembly elections and as the dazzling rally in Chinese stocks moderated. Furthermore, the market was anticipating the Reserve Bank of India's (RBI) monetary policy decision scheduled for Wednesday.
Leading the charge on the Sensex were stocks like Adani Ports, M&M, Reliance Industries, HDFC Bank, L&T, SBI, Ultratech Cement, NTPC, and Kotak Bank, all of which saw gains ranging from 1% to 4.5%. On the other hand, Tata Steel, Titan Company, Bajaj Finserv, JSW Steel, Bajaj Finance, Tata Motors, and ITC were among the top losers, with declines reaching up to 2.7%.
The broader market indices also mirrored the positive sentiment, with the BSE MidCap index rising 1.86% and the BSE SmallCap index gaining 2.44%, outperforming the benchmark indices. Sectorally, all major indices, except for the Nifty Metal index, witnessed rallies. The Nifty Media index soared over 3%, the Nifty Auto gained 1.84%, and the Nifty Pharma index rose 1.5%.
Paytm, the parent company of the popular payments aggregator, experienced a remarkable surge, with its shares climbing as much as 15% on Tuesday. This represented the stock's best single-day gain since February 8, 2023. The positive move pushed the stock into positive territory on a year-to-date basis, with gains exceeding 12% so far in 2024. Earlier this year, Paytm's shares had plummeted to their all-time low of ₹310 following the Reserve Bank of India's (RBI) imposition of restrictions on its Payments Bank in February, triggering a sharp sell-off in the stock. However, the recent rally has snapped a three-day losing streak for Paytm.
Global markets exhibited a cautious tone on Tuesday, with oil prices staying elevated amid the escalating conflict in the Middle East. The heightened tensions dampened risk appetite, particularly ahead of China's highly anticipated reopening after a long holiday. The benchmark 10-year US Treasury yield remained above 4% in early Asian trade, as a robust US labor market led traders to significantly reduce their expectations for Federal Reserve rate cuts. The ongoing conflict in the Middle East added to the volatility. Hezbollah's rocket attack on Israel's third-largest city, Haifa, prompted Israel to consider expanding its offensive into Lebanon. This situation, coupled with the fear of disruptions to oil supply, caused Brent crude futures to surge above $80 a barrel for the first time in over a month in the previous session.
Source: Sensex Ends 6-Day Losing Run, Rallies 585 Points; Nifty Tops 25,000; Paytm Soars 15%