Indian stock market indices, the Nifty and the Sensex, showed a strong recovery on Tuesday after two consecutive days of decline. This resurgence was attributed to increased buying in shares of metal, banking, and energy companies, as well as a bullish trend in the US markets. The 30-share BSE Sensex rose 275.62 points or 0.42% to settle at 65,930.77, reaching a high of 66,082.36 during the day. Meanwhile, the broader Nifty increased 89.40 points or 0.45% to reach 19,783.40.
Some of the biggest gainers among the Sensex firms included JSW Steel, Titan, Tata Steel, Sun Pharma, Reliance Industries, Bharti Airtel, Tata Motors, and HDFC Bank. On the other hand, NTPC, Tech Mahindra, Maruti, State Bank of India, and Larsen & Toubro were among the laggards.
According to Vinod Nair, the Head of Research at Geojit Financial Services, the positive momentum in the market was driven attention on the minutes of the latest Fed meeting. The declining inflation and cooling job data in the US have laid the foundation for a dovish comment from the Fed, leading to a drop in bond yields and the dollar index. This has sparked speculation about the potential peak in the interest rate cycle, attracting funds to emerging markets.
The US dollar index eased 0.10% to 103.33 ahead of the release of the Fed minutes later in the day. In Asian markets, Seoul ended with gains while Tokyo, Shanghai, and Hong Kong finished lower. European markets were trading on a mixed note, and the US markets closed in positive territory on Monday as bond yields eased and the dollar weakened.
Furthermore, the global oil benchmark Brent crude declined 0.61% to USD 81.82 a barrel. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 645.72 crore on Monday, according to exchange data.
In the previous trading session, the BSE benchmark dropped 139.58 points or 0.21% to settle at 65,655.15, while the Nifty slipped 37.80 points or 0.19% to 19,694.