Benchmark stock market indices closed higher on Tuesday, driven by gains in the energy and metal sector stocks. The S&P BSE Sensex added 234.12 points, closing at 78,199.11, while the NSE Nifty50 gained 91.85 points, ending the day at 23,707.90.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, noted that the markets saw a breather after Monday's sharp decline. The Nifty benchmark index opened with a gap-up, supported by favorable global cues, and traded within a range before closing at 23,707.90. Sectoral trends were mixed, with metals and energy sectors advancing, while the IT sector saw a slight decline. Broader indices also showed some recovery, gaining between 0.8% and 1.3%.
Despite this respite, markets continue to face significant selling pressure during recovery attempts, suggesting that bearish sentiment still holds sway. On a positive note, the dip in the volatility index (India VIX) indicates reduced nervousness among market participants. Given the mixed signals, Mishra recommended a "sell on rise" strategy for the index, unless it decisively surpasses the resistance level at 24,250. He also pointed out that the start of the earnings season is likely to present stock-specific opportunities, urging traders to focus on selective positioning and prioritize risk management.
In terms of individual stock performances, the Natural Gas Corporation (ONGC) led the Nifty50 with a strong 3.79% gain, followed by SBI Life Insurance, which showed strength with a 2.62% increase. HDFC Life Insurance also continued the positive trend, rising by 2.31%, while Tata Motors and Adani Enterprises gained 2.09% and 2.03%, respectively.
On the downside, Trent Limited experienced the steepest decline, falling 2.20%, followed by Holtech Limited with a 1.86% drop. Tata Consultancy Services (TCS) slipped by 1.56%, Eicher Motors fell 1.43%, and Tech Mahindra saw a marginal decline of 0.99%.
Most sectoral indices on the Nifty showed positive momentum in Tuesday's trading session. The Nifty Oil & Gas sector emerged as the top performer, advancing by 1.64%. The media sector also had a strong showing, with Nifty Media climbing 1.36%. The Nifty Metal sector gained 1.24%, while the healthcare segment displayed strength, with the Nifty Healthcare Index rising by 0.94%. The Nifty Realty index moved up by 0.80%.
Nifty Bank and Nifty Financial Services posted modest gains of 0.56% and 0.48%, respectively. Nifty Consumer Durables edged up by 0.37%, while Nifty FMCG and Nifty Private Bank saw minimal movement with gains of 0.01% and 0.38%. The midcap segments performed well, with Nifty Midsmall Healthcare rising by 1.55%, Nifty Midsmall Services gaining 0.97%, and Nifty Midsmall IT & Telecom up by 0.95%.
In contrast, Nifty IT stood out as the sole loser among the sectors, declining by 0.68%, while Nifty Auto remained unchanged at 0.00%. The mixed performance across various sectors indicates a broad-based recovery, but cautious sentiment remains as investors continue to assess the global and domestic economic outlooks.
