Indian benchmark indices staged a strong recovery on Tuesday, with the BSE Sensex jumping 564.03 points or 0.76% to 74,858.99 and the NSE Nifty 50 index adding 67.90 points or 0.29% to 23,414.30. According to Business Standard, the Sensex closed above the 74,800 mark while the Nifty managed to stay above the 23,400 level. The recovery came after Monday's weak opening when the Sensex had dropped 486.8 points and the Nifty fell 51.7 points, as reported by The Economic Times. The key equity benchmarks were supported by easing crude oil prices and renewed buying in heavyweight stocks, with sectoral performance showing mixed trends.
The positive momentum in Indian markets was driven by a strong overnight rally on Wall Street, with US stocks ending sharply higher on Monday. As reported by Business Standard, the Dow Jones Industrial Average rose 0.71% to 52,048.83, while the S&P 500 gained 1.49% to 7,764.70. The Nasdaq Composite advanced 2.26% to a record closing high of 27,122.09, with technology stocks leading the rally. Among major technology companies, Nvidia rose 2.30%, AMD jumped 9.95%, Intel rallied 12.14%, Microsoft gained 1.59%, Amazon advanced 1.87%, Meta Platforms surged 11.43% and Apple rose 0.85%. The Philadelphia Semiconductor Index gained 4.29%, supporting broader technology sentiment.
The market recovery was supported by positive developments in US-Iran relations, with President Trump indicating openness to meeting Iranian President Masoud Pezeshkian during the United Nations General Assembly in New York this week. As reported by Business Standard, Brent crude fell 3.4% on Monday to around $100.34 a barrel and was trading near $100.22 on Tuesday as investors assessed signs of easing supply disruptions and possible diplomatic engagement. The Trump administration has reportedly proposed investing $5 billion in a fund to help Middle Eastern countries rebuild energy infrastructure damaged during the Iran war and reduce their dependence on the Strait of Hormuz. Additionally, Saudi Arabia has increased crude shipments from its Gulf terminals following disruptions to its East-West pipeline, providing further relief to global energy markets.
Foreign and domestic institutional investors showed contrasting patterns in their equity market participation on September 21, 2026. According to provisional data from Business Standard, Foreign portfolio investors (FPIs) sold shares worth ₹576.20 crore, while domestic institutional investors (DIIs) were net buyers to the tune of ₹2,797.27 crore in the Indian equity market. The FPI selling was part of a broader trend, with FPIs selling shares worth ₹19,390.86 crore in September so far through September 21, following net cash purchases of ₹17,366 crore in August 2026. This contrasts with net buying of ₹6,731.97 crore by FPIs in July 2026, highlighting the continued volatility in foreign investment flows amid global uncertainties.
India's core sector output growth showed signs of moderation in August 2026, with the eight core industries growing 4.8% year-on-year, down from a revised 5.0% growth in July. As reported by Business Standard, the August growth was supported by higher output of cement and electricity, which rose 12.5% and 11.6% respectively. However, steel production increased only 3.4%, while output of coal, crude oil, natural gas and fertilisers declined. The moderation in core sector growth, despite strong performance in cement and electricity, reflects the mixed nature of industrial activity across different sectors in the current economic environment.
