Indian equity benchmarks ended higher on Tuesday, with the Sensex climbing 301 points and the Nifty closing above 22,150, driven by gains in IT, banking, and metal stocks. Positive global cues, easing crude oil prices, and fresh foreign inflows lifted investor sentiment. Analysts, however, warn that volatility may return as corporate earnings roll in and the U.S. Federal Reserve signals its next rate move.
Mumbai, October 23 —
After days of nervous trading and mixed signals, the Indian stock market breathed a sigh of relief on Tuesday. The BSE Sensex closed 301 points higher at 73,216, while the NSE Nifty rose 89 points to 22,151, rebounding from early losses amid a broader global market rally.
As global risk appetite returned, investors sought comfort in large-cap stocks, with IT and private banks leading the rebound.
Sentiment was also buoyed by easing crude oil prices, a stronger rupee, and renewed optimism around the upcoming Q2 earnings season.
“India continues to outperform global peers due to robust domestic demand and earnings visibility,” said V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“The correction phase seems temporary rather than structural.”
1. The Market Snapshot
| Index | Closing | Change | % Change |
| BSE Sensex | 73,216 | +301 | +0.41% |
| NSE Nifty 50 | 22,151 | +89 | +0.40% |
| Nifty Bank | 47,229 | +216 | +0.46% |
| Nifty IT | 36,785 | +455 | +1.25% |
The broader market also mirrored the optimism, with the BSE MidCap and SmallCap indices gaining nearly 0.7% each, as investors bought into beaten-down stocks.
2. What Triggered the Rally
The rebound was largely driven by:
- Global cues: U.S. and European markets opened strong amid expectations of rate stability by the U.S. Federal Reserve.
- Oil prices: Brent crude slipped below $83 per barrel, easing inflation fears for oil-importing economies like India.
- Rupee strength: The rupee appreciated 12 paise to close at ₹83.08/$, supporting FPI sentiment.
- Q2 earnings optimism: IT and banking sectors are expected to deliver stable results, cushioning the market against global shocks.
3. Sector-Wise Performance
🖥️ IT Stocks Shine
Technology stocks led the rally after Infosys, TCS, and HCLTech reported better-than-expected U.S. client orders.
The Nifty IT index surged 1.25%, recovering losses from the previous week.
- Infosys gained 2.1%,
- TCS rose 1.8%, and
- Wipro added 1.3%.
“IT valuations had corrected excessively,” said Sandip Sabharwal, market expert.
“Now investors are factoring in a soft landing in the U.S. economy and stable tech spending.”
🏦 Banking and Financials Stable
The Nifty Bank index rose 0.46%, supported by ICICI Bank, Axis Bank, and HDFC Bank.
Public-sector banks also gained on reports of improved credit growth.
- HDFC Bank climbed 0.7% amid expectations of strong Q2 loan performance.
- SBI gained 0.9%, recovering from profit-booking.
- ICICI Bank ended up 0.8%.
“The domestic credit cycle remains strong, driven by retail lending,” noted Anand Rathi Research.
“Bank profitability should sustain even as NIMs normalize.”
⚙️ Metals and Infra Add to Momentum
Global metal prices rebounded amid renewed Chinese infrastructure stimulus hopes.
Tata Steel and JSW Steel rose over 2%, while L&T added 1.5% after securing fresh orders in the Middle East.
4. Foreign Flows Turn Positive
After several weeks of outflows, Foreign Portfolio Investors (FPIs) turned net buyers, infusing ₹1,286 crore into Indian equities on Monday.
Domestic Institutional Investors (DIIs) also maintained a supportive stance, adding ₹947 crore, suggesting a synchronized bullish sentiment.
Analysts believe the return of FPIs reflects India’s relative macro stability, strong corporate earnings, and global diversification away from China.
“Foreign investors are re-entering India selectively — favouring financials, IT, and infrastructure,” said Rohit Srivastava, market strategist at IndiaCharts.
5. Global Markets Cheer Fed Comments
Wall Street’s overnight rally spilled over to Asia as investors digested dovish signals from the U.S. Federal Reserve.
Fed Governor Christopher Waller hinted at maintaining interest rates if inflation continues to trend lower — a statement that triggered global buying.
Asian indices mirrored the optimism:
- Nikkei 225 jumped 1.2%,
- Hang Seng rose 0.9%, and
- Shanghai Composite climbed 0.6%.
European markets opened firm, further lifting sentiment in emerging economies like India.
6. Currency & Commodities
- Rupee: ₹83.08 per USD (+0.12%)
- Brent Crude: $82.75 per barrel (-1.3%)
- Gold: ₹71,800 per 10g (+0.2%)
- Silver: ₹83,400 per kg (+0.5%)
The drop in oil prices provided crucial breathing room for India’s import bill, while moderate gold prices signalled stable inflation expectations.
7. Expert View
Market analysts maintain a cautiously optimistic outlook.
“India remains a structural bull market,” said Radhika Gupta, MD & CEO, Edelweiss AMC.
“But short-term volatility will hinge on Fed commentary and domestic earnings.”
Brokerage Motilal Oswal projects Nifty EPS growth at 14% for FY25, led by banks, autos, and energy.
However, analysts warn that valuations remain elevated.
“At 20x FY25 earnings, Indian markets are pricing in perfection,” cautioned Morgan Stanley India.
“Investors should brace for minor corrections.”
8. Investor Sentiment on the Ground
Retail investors remain upbeat, treating dips as opportunities.
Trading platforms like Zerodha and Groww reported increased volume in mid-cap counters such as IRFC, Cochin Shipyard, and RVNL.
“There’s euphoria among retail investors, but also FOMO,” said Nikhil Kamath, co-founder of Zerodha.
“People must separate momentum from fundamentals.”
9. Economic Outlook
The IMF’s latest projection of 6.8% GDP growth for India in 2025 strengthened market confidence.
Stable inflation and a manageable fiscal deficit make India an attractive investment destination, even amid global headwinds.
RBI, however, continues to monitor inflation risks linked to crude oil and food prices.
“Monetary policy must stay vigilant,” RBI Governor Shaktikanta Das said last week.
“We are not declaring victory against inflation yet.”
10. Corporate Highlights
- Reliance Industries rose 1.1% ahead of Q2 results, with analysts expecting robust refining margins.
- Maruti Suzuki gained 0.9% on strong sales data and upcoming EV plans.
- Adani Enterprises jumped 3%, recovering from recent correction after MSCI reaffirmed its index inclusion.
Meanwhile, Zomato and Paytm showed mild weakness amid volatility in the new-age stock basket.
11. Technical Analysis
Market experts say Nifty has formed a near-term base at 21,900, with resistance at 22,300.
“We expect consolidation between 21,900 and 22,350,” said Amol Athawale, VP – Technical Research, Kotak Securities.
“Momentum oscillators are neutral, but the bias remains positive.”
Investors are advised to maintain stop-losses and accumulate quality stocks on dips.
12. Outlook: Festive Tailwinds and Q2 Earnings
With Diwali season approaching, consumption-related sectors — FMCG, auto, and retail — are expected to see improved volumes.
Q2 corporate results will be critical in determining market direction.
“We see tailwinds for consumer durables and auto ancillaries,” said Rahul Arora of Nirmal Bang.
“Festive sentiment could offset global volatility.”
13. Risks to Watch
While momentum looks positive, experts flag three near-term risks:
- Geopolitical tensions in the Middle East could push oil prices higher.
- U.S. bond yields rising again may trigger capital outflows.
- Overvaluation risk in mid-caps may lead to sharp corrections.
“Markets are optimistic but not immune,” warned Ambit Capital.
“A global shock could quickly unwind these gains.”
14. Broader Market Dynamics
While large caps dominate headlines, mid- and small-cap investors are more cautious after the recent SEBI advisory on valuation risk.
Still, companies with solid balance sheets — like BEL, IRCTC, and NHPC — remain favourites among retail traders.
“Retail participation has democratized Indian markets,” said Ajay Bagga, market veteran.
“But investors must remember: bull markets climb a wall of worry.”
15. Conclusion: Calm Before the Next Wave
As the Sensex closed higher for the second consecutive day, traders exhaled — but only slightly.
Global optimism, strong domestic macros, and resilient corporate earnings are supporting the rally, but valuations demand caution.
India’s stock market, now valued at $4.2 trillion, has matured from reactive to resilient.
It no longer dances entirely to Wall Street’s tune; it writes its own rhythm.
“The Indian market may wobble,” said Devina Mehra, First Global founder,
“but its trajectory is firmly upward — powered by demographics, discipline, and digitalisation.”
For investors, the message is simple: the fundamentals remain intact, but discipline remains key.
#Sensex #Nifty #StockMarket #Investors #Finance #ITStocks #Economy #SarhindTimes
+ There are no comments
Add yours