Business

IIE DIGITAL DESK : Powerful display of investor confidence, the Indian stock market witnessed a dramatic surge on Tuesday, with the BSE Sensex rallying over 1,590 points and the NSE Nifty breaching the 23,300 mark. The bullish momentum was fueled by positive global cues, easing concerns over international trade tensions, and robust performances across key sectors such as banking, auto, and manufacturing. The Sensex closed the day at 76,726.08, up 1,594 points or 2.12 percent, while the Nifty 50 climbed 468 points to end at 23,311, marking a new lifetime high for the index.

The rally was largely driven by optimism surrounding the U.S. administration’s recent moves to ease trade pressures by deferring certain tariffs and granting exemptions to select countries, which helped restore market sentiment globally. Investors also welcomed the return of foreign institutional buying and strong corporate earnings reports, particularly from the banking and automobile sectors, which provided an additional boost to market morale. Among the top performers on the Nifty were HDFC Bank, Tata Motors, Reliance Industries, Infosys, and ICICI Bank, all of which recorded strong gains.

HDFC Bank saw a significant uptick after it revised its savings account interest rates, a move that analysts believe could improve the bank’s net interest margins. Tata Motors was another notable gainer, rising nearly 5 percent after reports of strong vehicle demand and export numbers for March. In the broader market, midcap and smallcap indices also surged in tandem with the frontline indices. The Nifty Midcap 100 rose by over 2.4 percent, while the Nifty Smallcap 100 advanced 2 percent, reflecting widespread buying across the board.

The rally also extended to sectors like capital goods, metals, and consumer durables. Shares of companies like Dixon Technologies and Kaynes Technology gained significantly on the back of optimism surrounding India’s electronics manufacturing sector, which is expected to benefit from the government’s production-linked incentive schemes. Auto component manufacturers like Samvardhana Motherson and Sona BLW Precision Forgings also attracted investor interest, with both stocks gaining more than 7 percent.

Analysts say the rally signals a shift in investor mood from cautious to bullish, especially with expectations of a stable policy environment and sustained economic growth in the coming quarters. Many experts are also predicting further upside potential in the market, as long as global cues remain supportive and domestic economic indicators continue to show resilience.

The Indian rupee also strengthened slightly against the U.S. dollar, which further boosted sentiment in the equity markets. While the markets have been volatile in recent weeks due to global geopolitical concerns and mixed earnings, today’s rally has helped restore confidence and could set the tone for a strong April performance. Traders are now closely watching the upcoming inflation data and central bank commentary for further cues.