Domestic equity benchmarks closed higher on Tuesday as investors piled into pharma, private banking and oil & gas stocks while awaiting the Reserve Bank of India’s policy meeting.
The Sensex gained 685.34 points, or 0.95 percent, to finish at 73,067.81, while the Nifty rose 220.35 points, or 0.98 percent, to close at 22,776.10. Technical analysts noted that a sustained move above 22,800 could pave the way toward the 23,000 mark. On the downside, immediate support sits around 22,600, followed by 22,500. The relative strength index has entered the mid‑30s, indicating a gradual improvement in momentum, and the MACD histogram has eased from its negative reading, suggesting that selling pressure is moderating.
Market sentiment remained positive throughout the session, with buying interest in heavyweight stocks helping the benchmarks extend gains. Investors focused on the upcoming RBI policy announcement for clues on interest rates, liquidity conditions and the central bank’s economic outlook. Among the constituents of the Nifty index, Trent, BSE and Kotak Mahindra Bank emerged as the top gainers, contributing significantly to the market’s upward move.
The broader market also participated in the rally. The Nifty MidCap index climbed 1.08 percent, while the Nifty SmallCap index outperformed with a gain of 1.56 percent. Sector‑wise, pharma and chemical stocks led the advance, with the Nifty Pharma index as the best‑performing sectoral gauge, followed by the Nifty Chemical index. In contrast, information technology stocks experienced some profit booking, making the Nifty IT index the biggest sectoral loser of the day.
Experts said that optimism in domestic equities, coupled with expectations surrounding the RBI policy decision, supported sentiment despite lingering global uncertainties. Analysts noted that the near‑term market bias remains cautiously constructive; the decline in crude prices has provided a meaningful tailwind and helped benchmarks recover for a second straight session, but the rebound still faces several macro risks.
