The stock market made a strong comeback on Tuesday, with the Sensex rising by 1,131 points and the Nifty 50 gaining 325 points. Investors started buying stocks that had fallen sharply, believing the market had hit its lowest point and was ready to recover.
The Nifty 50 reached 22,834, a key level for traders, while short-covering (buying stocks to close previous bets on falling prices) helped push prices even higher.
Foreign & Domestic Investors Show Confidence
Foreign Institutional Investors (FIIs) were net buyers, purchasing shares worth ₹1,463 crore overall. They bought stocks worth ₹15,450 crore and sold ₹13,987 crore. Domestic Institutional Investors (DIIs) also bought ₹11,686 crore worth of stocks and sold ₹9,658 crore.
Key Market Highlights:
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Sensex closed at 75,301, up 1.5%
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Nifty 50 closed 1.5% higher
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Rupee strengthened to 86.57, gaining 23 paise against the US dollar
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10-year government bond yield fell by 2 basis points as RBI repurchased bonds to boost liquidity
Read More: Sensex Surges: Several Stocks Soar Over 10% on BSE
Global & Domestic Factors Driving the Rally
This market recovery was part of a global trend. US markets had surged on Monday, which lifted Asian and European stock markets as well.
Several positive factors within India also helped:
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Better economic indicators like a lower trade deficit and higher GDP growth
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Increased tax collections, which indicate a strong economy
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Falling crude oil prices, reducing costs for businesses
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Improved trade relations with the US, easing investor concerns
Sectors Leading the Gains
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Financial stocks rebounded after recent losses
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Steel and metal stocks rose due to higher global metal prices
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Bargain buying boosted sectors that had suffered the most in the recent market decline
Also Read: Market Expert Chandan Taparia Reveals 3 Must-Buy Stocks Today
Despite this sharp recovery, experts warn that global uncertainties could make it difficult for the market to sustain these gains.
“Markets were in a bearish phase recently, making stock valuations attractive. Investors took this opportunity to buy, but global risks still exist,” said Prashant Tapse, Senior VP at Mehta Equities.
