Heavyweight stocks such as Adani Enterprises, Infosys and Larsen & Toubro led the rally, helping lift overall market sentiment despite range-bound trade in the broader market.
Sensex, Nifty and higher on PSU bank & IT buying
New Delhi: Equity benchmarks trimmed early losses to close modestly higher on Tuesday, supported by strong buying in PSU banks and IT stocks amid steady global cues.
The BSE Sensex rose 173.81 points or 0.21% to settle at 83,450.96, while the Nifty 50 gained 42.65 points or 0.17% to end at 25,725.40. Heavyweight stocks such as Adani Enterprises, Infosys and Larsen & Toubro led the rally, helping lift overall market sentiment despite range-bound trade in the broader market.
PSU Banks, IT Lead Recovery
Vinod Nair, Head of Research at Geojit Investments Limited, said domestic markets traded within a narrow range while attempting to recover recent losses triggered by concerns over AI-led disruptions. He highlighted selective bottom-fishing in IT stocks and continued outperformance in PSU banks, supported by positive Q3 earnings and regulatory backing.
Abhinav Tiwari, Research Analyst at Bonanza, noted that the markets extended their rebound for a second consecutive session, driven by buying in large-cap IT, financials and select defensive stocks. He emphasised that the steady gains suggest sectoral rotation rather than a sharp rally.
Outlook: Cautious Optimism Ahead
Market sentiment is expected to remain cautious in the near term as investors track global developments related to artificial intelligence. However, a resilient GDP outlook and a stabilising rupee may encourage renewed foreign institutional investor (FII) inflows.
According to analysts at Kotak Institutional Equities, the market could witness a gradual upward trajectory in the coming months, backed by improving earnings visibility. They project Nifty 50 net profit growth of 16% in FY2027 and 15% in FY2028, following an estimated 8% growth in FY2026. Stronger GDP growth, recovering consumption demand and export tailwinds are expected to act as key drivers, though elevated valuations in consumption stocks and global growth risks remain concerns.
Sectoral Highlights
The India VIX cooled sharply, ending below the 13 mark, signalling easing volatility. Broader market indices finished in the green, with midcap and smallcap stocks outperforming.
Among sectors, Nifty PSU Bank and Nifty IT led the gains, while Nifty Metal and Nifty Realty closed in negative territory. Bank Nifty extended its outperformance, closing near the 61,200 mark with a gain of 0.37%, according to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
