Markets soared on Tuesday, with Nifty increasing by about 120 points and Sensex increasing more than 400 points, on the back of robust investors' inflows and easing tensions in world trade. The benchmark indexes opened in the positive direction today due to encouraging Asian markets' lead and continuous foreign institutional investor (FII) buying, which extended to nine straight sessions this month.
Sensex broke through the 80,200 mark, a fresh calendar-year high, as Nifty crossed 24,400 in intraday trading. The sectors that are in growth phases of banking, IT, and energy were the drivers of gains, with the biggies like Reliance Industries rising on the back of good Q4FY25 results. Reliance contributed enormous market capitalization itself, leading to overall market euphoria.
Foreign investors have come back with confidence, driven by India's relatively robust economic growth, stabilizing crude oil prices, and hopes of continued monetary easing by the Reserve Bank of India.
Data indicate that FIIs have invested more than ₹14,000 crore in a couple of trading sessions in recent times, unwinding previous outflows and infusing liquidity.
Market analysts predict the Nifty would get support around 24,100-24,200 levels and would oppose at 24,500-24,700 levels in coming days. Bank Nifty will oscillate from 55,000 to 56,350, indicating sound demand in bank stocks. Trader can buy at dips and sell at rallies when the trend remains healthy.
In spite of the geopolitical tensions between India and Pakistan after the Pahalgam terror attack, investors seem to be tracking India's robust fundamentals and corporate earnings season headed by results of high-ticket companies like Bajaj Finserv, BPCL, and Star Health Insurance.
The entire market rally is a mix of resolving global uncertainties, strong domestic earnings, and continuing foreign flows that are making Indian equities one of Asia's best performing markets this month.
