The Indian stock market experienced a notable recovery from its lows on Tuesday, with both benchmark indices closing the session with positive gains. This rebound came after the market had recorded its worst intraday performance of a month during Monday's trading session.
The recovery was primarily driven by gains in banking stocks, including HDFC Bank, ICICI Bank, Axis Bank, and State Bank of India, which collectively supported the market's upward movement.
Rally in metal stocks
Moreover, there was a significant rally in metal stocks, including Tata Steel and JSW Steel, following positive economic indicators from China that suggested improvements in the country's economy.
According to recent media reports, Premier Li Qiang expressed confidence that China would meet its GDP target for the year and achieve its future economic goals, supported by a series of fiscal and monetary stimulus measures implemented by Beijing.
The robust rally in the banking and metal sectors propelled the Nifty 50 to close the trading session up by 0.91%, reaching 24,213 points. Similarly, the Sensex concluded the day with a gain of 0.84%, finishing at 79,447 points.
Micapd and smallcap stocks also closed higher but lagged behind the benchmark indices. The Nifty Midcap 100 index recorded a gain of 0.59%, finishing at 56,115 points, while the Nifty Smallcap 100 index ended the session at 18,503 points, reflecting an increase of 0.43%.
Among sectoral indices, Nifty Metals ended the session with a sharp gain of 2.84% followed by Nifty Private Bank, Nifty PSU Bank, and Nifty Auto all of which ended with over 1% gains. On the losing side, Nifty FMCG and Nifty Media ended with modest losses over 0.30%.
On the Nifty 50, JSW Steel, Bajaj Auto, Tata Steel, Hindalco Industries, and Axis Bank were the top gainers, while Adani Ports & SEZ, Trent, ITC, Bharti Airtel and Asian Paints were the top index losers.
(By arrangement with livemint.com)