Sensex up 370 pts, Nifty nears 25k as rally extends to 4th day; more upside ahead?

Domestic stock indices Sensex and Nifty50 on Tuesday extended gains for the fourth straight session amid upbeat investor sentiment over proposed GST reforms, S&P rating upgrade and progress in the Russia-Ukraine peace talks.

At close, the BSE Sensex was up 370.64 points, or 0.46 per cent, at 81,644.39, taking its four-day gains to over 1,400 points. The NSE Nifty50 advanced 103.70 points, or 0.42 per cent, to settle at 24,980.65. The 50-pack index had breached the 25,000 level during the trade, but it found some resistance, analysts said.

“The RSI indicator is in a classic bullish crossover, indicating strong positive momentum. Going forward, the index might remain strong. On the lower end, a support is placed at 248,00. The positive sentiment would be intact as long as it stays above the said level," said Rupak De, Senior Technical Analyst at LKP Securities.

Tata Motors emerged as the leading gainer on Sensex, with its shares rising by 3.46 per cent to Rs 699.80. Adani Ports rose 3.12 per cent, followed by Reliance Industries (up 2.89 per cent), Eternal (up 1.97 per cent), Tech Mahindra (up 1.75 per cent), and Hindustan Unilever (up 1.57 per cent).

Six stocks, namely Reliance Industries, Bharti Airtel, Tata Motors, Kotak Mahindra Bank, Eternal and Hindustan Unilever, contributed heavily to the Sensex’s rise.

In terms of sectoral performance, the BSE Oil & Gas rose by 1.49 per cent to end at 26,430.83, while the BSE Auto index climbed 1.45 per cent, closing at 57,050.38.

Overall, out of the 4,232 stocks traded on the BSE, 2,636 advanced, 1,423 declined, and 173 remained unchanged.

Vinod Nair, Head of Research at Geojit Investments Limited, said the national market has maintained its renewed momentum, buoyed by expectations of GST rationalisation and a recent upgrade in India's credit rating.

“Additional optimism came from signs of easing geopolitical tensions between Russia and Ukraine, shifting the near-term outlook from consolidation to a more constructive stance. However, the uptrend may face resistance until greater clarity emerges on US-India trade negotiations. Notably, small- and mid-cap stocks outperformed, with auto stocks leading gains, driven by hopes that China may address supply concerns related to rare earth magnets," Nair said.