Sensex, Nifty rebound; Rs 6.1 lakh crore added to investors' wealth

Indian equity benchmarks recovered on Tuesday, snapping a two-session losing streak as easing crude oil prices and buying in key sectors improved investor sentiment. The 30-share BSE Sensex pack jumped 639.82 points or 0.82 per cent to close at 78,205.98, while the NSE Nifty50 index advanced 233.55 points or 0.97 per cent to settle at 24,261.60.

The rally added more than Rs 6.1 lakh crore to investors' wealth in a single session. The overall market capitalisation (m-cap) of BSE-listed companies rose by Rs 6.12 lakh crore to Rs 447.22 lakh crore from Rs 441.10 lakh crore in the previous session.

Buying in heavyweight stocks such as ICICI Bank Ltd, HDFC Bank Ltd, Mahindra & Mahindra Ltd (M&M), Axis Bank Ltd, State Bank of India (SBI), Maruti Suzuki India Ltd (MSIL), Larsen & Toubro (L&T), Kotak Mahindra Bank, Tata Steel and InterGlobe Aviation Ltd (IndiGo's parent) helped lift the benchmark indices.

Sectoral participation was largely positive during the session. Automobile, banking, financial services, pharma and realty stocks witnessed buying interest, while IT stocks ended lower. Broader markets outperformed the benchmarks, with the Nifty Midcap 100 index rising 1.62 per cent and the Nifty Smallcap 100 gaining 2.12 per cent.

Kranthi Bathini, Equity Strategist at WealthMills Securities, said, "A correction in crude from its recent peak of $120 per barrel has brought some positivity to the market. We are witnessing a bit of a bounce-back and some bottom fishing. Going ahead, it will be important to see whether the current levels can sustain." Brent crude cooled to around $90 per barrel today.

Vinod Nair, Head of Research at Geojit Investments, said, "Dalal Street mirrored the improvement in global sentiment after the sharp decline in crude oil prices, following comments from Trump hinting at a possible end to the war. However, elevated levels of India VIX continued to signal underlying uncertainty in the market."

He added, "In the near term, markets are likely to remain in the woods, with investors closely monitoring signs of geopolitical de-escalation. Greater clarity could trigger value buying in sectors that have been most affected by recent volatility."

Echoing a similar view, Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, believes the market could remain volatile in the near term but sees opportunities emerging in select sectors.

"There are certain sectors that were largely insulated from developments in the Middle East but still got hammered due to the conflict. I believe this is a good opportunity for investors to enter them. These sectors include banking, metals and automobiles. Defence also remains attractive, as it is a structural story in the making," he stated.