Sensex surged 317 pts, Nifty settles at 25,196; ends 4-day losing streak

After four days of declines, the Indian benchmark indices, BSE Sensex and Nifty50, rose on Tuesday, thanks to a drop in domestic inflation and upbeat market sentiment. The BSE Sensex closed the day at 82,570.91, up 317.45 points or 0.39 per cent. The NSE Nifty 50 surged 113.50 points, or 0.45 per cent, to settle at 25,195.80.

With retail inflation hitting a six-year low of 2.1 per cent in June, moving closer to the Reserve Bank of India's comfort zone, another rate cut in August could be anticipated.

Ajit Mishra, SVP, Research, Religare Broking Ltd, said the markets witnessed some respite and edged marginally higher after four consecutive sessions of decline. Following a flat start, the Nifty attempted a recovery in the early hours, largely driven by buying interest in select heavyweights.

"However, the upside remained capped near the short-term moving average around the 25,250 level. Eventually, it settled at 25,195.80, up by 0.47 per cent. On the sectoral front, all key sectors ended in the green, with auto, pharma, and realty emerging as the top gainers. The positive sentiment extended to the broader markets as well, with both midcap and smallcap indices gaining nearly a per cent each," Mishra said.

Further, Mishra said that participants drew comfort from the further easing of CPI inflation, which triggered notable buying in rate-sensitive sectors in hopes of a potential rate cut.

For the day, Sun Pharma rose 2.71 per cent to Rs 1,727.70 and led the gainers at the Sensex. It was followed by Bajaj Finserv, Tata Motors, Trent, Mahindra & Mahindra (M&M) and Bajaj Finance, which surged up to 1.6 per cent.

HDFC Bank, ICICI Bank, Infosys, Sun Pharma and M&M contributed most to the Sensex's rise.

The BSE Bankex rose 0.28 per cent to settle at 63,775.26. Yes Bank surged 2.40 per cent, followed by IndusInd Bank, Bank of Baroda and State Bank of India (SBI).

On BSE, 4,215 stocks traded today, of which 2,576 advanced, 1,479 declined, and 160 remained unchanged.