Indian markets extended their rally for the third consecutive session on Tuesday, with the Sensex surging 753.03 points or 0.96% to close at 79,273.33 and the Nifty advancing 211.75 points or 0.87% to settle at 24,576.60, comfortably above the 24,550 mark. According to reports from Outlook Business, the rally was driven by broad-based buying across sectors and improving global sentiment amid hopes of renewed US-Iran talks. However, Gift Nifty is trading at 24,430, down nearly 154 points from the previous close, signaling a weak start for Wednesday's session. The rally added nearly ₹3 lakh crore to BSE market capitalisation, taking the total to around ₹469 lakh crore, while the indices have now gained over 1.6% in the last three sessions, marking one of the strongest short-term recoveries in April.
All sectoral indices ended in the green, with FMCG and realty stocks leading the rally, gaining around 2% each, while banking and telecom indices also advanced about 1%. Among Nifty stocks, Nestle India emerged as the top performer with gains of 8.43%, supported by strong earnings momentum, while Hindustan Unilever also posted impressive gains of 3.97%. PNB Housing Finance surged 8% after reporting 14% Q4 profit growth, and Billionbrains Garage Ventures gained 8% as profit more than doubled. More than 140 stocks touched their 52-week highs on the BSE, including Bank of Maharashtra, AU Small Finance Bank, SAIL, Hitachi Energy, Welspun Corp, JSW Energy, Adani Ports, CG Power, Siemens, NTPC and Vedanta, highlighting strong underlying market momentum.
Banking stocks played a key role in driving the rally, with heavyweights such as ICICI Bank, HDFC Bank and Axis Bank contributing significantly to the upside. According to Outlook Business, the Nifty Bank index rose 1.09%–1.4%, with ICICI Bank and Axis Bank gaining over 1% each. SBI Securities noted that Bank Nifty could extend gains towards 58,000–58,500 levels in the near term, while 56,800–56,700 is expected to act as immediate support. Lower crude oil prices improved the inflation outlook, supporting rate-sensitive sectors like banking, with PSU banks like Union Bank of India rising 1.6%. Bank Nifty index jumped 789.10 points, or 1.39%, to close at 57,371.45 on Tuesday, forming a sizeable bullish candle on the daily chart and closing above its 100-day and 200-day EMA, signaling improving trend strength.
According to HDFC Securities, Nifty 50 formed a bullish candle with a broader body and minor wick on the daily chart, indicating the dominance of the ongoing uptrend. The underlying trend remains positive with all eyes on the upcoming US-Iran Peace talks scheduled in Islamabad this week. Religare Broking noted that the Nifty 50 tested 24,600 level and is likely to target the 24,800 zone next, which coincides with the long-term moving average (200 DEMA). A decisive breakout above this zone could accelerate the upmove towards the 25,200 level, while immediate support has shifted to the 24,000–24,200 range. Kotak Securities expects the short-term market texture to remain bullish, with Sensex holding an uptrend continuation formation and potential to move towards 79,800–80,000 levels above 79,000 support. However, analysts warn that the negative outcome of US-Iran talks could have knee-jerk action for the Nifty 50 in the short term.
The easing oil trend provided crucial support to market sentiment, with Brent crude cooling to $94–$95 per barrel, easing concerns after recent spikes. Global sentiment remained supportive, with the MSCI Asia Pacific Index rising 0.7% and the MSCI Emerging Markets Index gaining 1.2%. The easing oil trend is critical for India, as it directly impacts inflation and currency stability. Foreign Institutional Investors were net buyers of around ₹1,200 crore, while Domestic Institutional Investors bought approximately ₹800 crore, indicating continued institutional support for the ongoing rally.
