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:

Sensex closed at 75,301, up 1.5%
Nifty 50 closed 1.5% higher
Rupee strengthened to 86.57, gaining 23 paise against the US dollar
10-year government bond yield fell by 2 basis points as RBI repurchased bonds to boost liquidity

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:

Better economic indicators like a lower trade deficit and higher GDP growth
Increased tax collections, which indicate a strong economy
Falling crude oil prices, reducing costs for businesses
Improved trade relations with the US, easing investor concerns

Sectors Leading the Gains

Financial stocks rebounded after recent losses
Steel and metal stocks rose due to higher global metal prices
Bargain buying boosted sectors that had suffered the most in the recent market decline

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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.