Benchmark indices Nifty and Sensex extended their gains for a second straight session on Tuesday, supported by a sharp rally in auto and metal stocks that lifted overall sentiment. Meanwhile, broader markets outperformed, with midcap and smallcap indices rising 0.5% and 0.35%, respectively.

The BSE Sensex rose 208 points to close the session at 84,274 or 0.25% higher, while the Nifty 50 gained 68 points or 0.26% points to end the day at 25,935.

On the 30–share Sensex, Eternal rose over 5% to end the session as the top gainer on the index. Tata Steel followed suit with a rise of 2.82%, while M&M and Tech Mahindra gained more than 1.5% each. HCL Tech, Bajaj Finance, Bharti Airtel, and Adani Ports fell up to 2% on Tuesday.

Expert views

Vinod Nair, Head of Research, Geojit Investments said today’s rise was supported by the US trade agreement and positive cues from key Asian markets. A strong resurgence in FII inflows, coupled with rupee appreciation, is further bolstering the investor sentiment, although intermittent profit-booking was visible across sectors. With tariff-related concerns largely easing, the near-term market trajectory will hinge on Q3 earnings, which have been mixed and below expectations so far. Investors are now focused on the combined impact of recent fiscal and monetary measures to revive earnings momentum in the coming quarters.”

Global Markets
Asian equities moved higher on Tuesday, with gains led by Tokyo markets extending their rally after Japanese Prime Minister Sanae Takaichi’s decisive election win over the weekend. MSCI’s broad Asia-Pacific index excluding Japan rose 0.6%, while the Nikkei 225 climbed 2.3% for a third straight session to a fresh high. The yen also strengthened for a second consecutive day.European markets opened on a mixed note as investors assessed a wave of corporate earnings announcements. The Stoxx index was largely flat with no clear trend across major markets and sectors, while Germany’s DAX advanced 0.4%.

U.S. stock futures traded slightly lower on Tuesday morning after the Dow Jones Industrial Average closed at a fresh record high. Dow futures declined by 25 points, or about 0.04%, while S&P 500 futures slipped 0.06% and Nasdaq 100 futures fell 0.2%.

Crude impact

Oil prices edged higher on Tuesday as traders assessed the risk of potential supply disruptions, with U.S. guidance for vessels passing through the Strait of Hormuz keeping geopolitical tensions between Washington and Tehran in focus.

Brent crude futures rose 29 cents, or 0.4%, to $69.33 per barrel by 0916 GMT, while U.S. West Texas Intermediate crude gained 22 cents, or 0.3%, to $64.58 per barrel. “The market is still focused on the tensions between Iran and the U.S.,” said Tamas Varga, oil analyst at brokerage PVM.

Rupee vs Dollar

The Indian rupee ended 0.2% higher at 90.5775 against the U.S. dollar, compared with its previous close of 90.7575.

(With inputs from agencies)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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Indian equity markets continued their positive momentum, with benchmark indices edging closer to record highs, even as resistance emerged near the 26,000 mark. Market participants remained encouraged by the broader strength across sectors and improving sentiment following recent global and domestic developments.

Speaking to ET Now, market expert Vinay Rajani from HDFC Securities highlighted the technical resilience of the Nifty, pointing to a strong recovery from recent lows. “So, nice recovery from the lower level. Nifty partially filled the gap which was formed on the 3rd February on the back of the US-India trade deal and that gap was partially filled and Nifty bounced back. So, a typical gap has acted as a support area and now Nifty has witnessed a 500 points recovery from that level,” he said.

Rajani added that the index remains structurally strong, supported by key technical indicators. “So, Nifty is looking very strong as it is still holding above 20, 50, 100, and 200 days’ moving average, so that way also it is very strong,” he noted.

He also pointed out that broader markets are beginning to participate more actively in the rally, aided by the nearing end of the earnings season. “Broader markets are gaining strength. We are at the fag end of the result season, getting over, so that is also a good sign for the broader markets because most of the negatives and positives have been discounted and now broader market can increase their participation in this rally,” Rajani said.

On the outlook for the benchmark index, Rajani maintained a bullish stance, citing strong support levels. “So, on the Nifty we are bullish. We feel that there is a strong support around 25,600 and with that stop loss one should continue to hold on to the long position and we are expecting Nifty to hit an all-time high above 26,373. So, overall, things are quite strong and broader markets have started participating. So, we are bullish on the market with a stop loss of 25,600,” he added.

Turning to sectoral and stock-specific opportunities, Rajani said metals remain a clear outperformer in the current market phase. “Yes, so metal is the space which is continuously outperforming. So, out of that segment steel stocks have started performing well and getting momentum on the charts,” he said.
He highlighted Steel Authority of India (SAIL) as a preferred trading pick. “So, Steel Authority of India, SAIL, is looking very strong to me. Around 160 one can take entry, for trading stop loss can be kept at 157, on the upside I am expecting a short-term target at 166,” Rajani said.In the PSU banking space, Rajani identified Bank of Maharashtra as another stock showing strength. “The second stock I would pick from the PSU banking space, that is Bank of Maharashtra, which is looking quite strong. So, after some small consolidation it is trying to resume its primary uptrend. So, around 66.80, 66.90 one can go long, I would suggest a stop loss at 65 for the trading, on the upside I am expecting an immediate target at 70,” he added.

With both frontline and broader indices showing sustained strength, market participants remain cautiously optimistic, watching key resistance levels while selectively focusing on outperforming sectors such as metals and PSU banks.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of WPM, SILJ, AG, PAAS, SVM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.