Dalal Street Closes Higher, Sensex Tests 82,000 - Here's What Led To The Rally

The BSE Sensex started trading above 81,900, jumping more than 100 points, while the NSE Nifty50 crossed 25,100 after climbing close to 50 points.

Additionally, on the domestic front, data from exchanges showed that Foreign Institutional Investors (FIIs) offloaded equities worth Rs 313.77 crore on Monday, while Domestic Institutional Investors (DIIs) emerged strong buyers, picking up shares worth Rs 5,036.39 crore.

Source : ABPLIVE AI

The Indian benchmark indices ended in the green for the fifth consecutive closing session with the BSE Sensex closing at 81,926.75 higher by 136.63 points and the NSE Nifty50 ending at 25,108.30 higher by 30.65 points on Tuesday.

During the opening session, the Indian markets continued to rally ahead on Tuesday. The BSE Sensex started trading above 81,900, jumping more than 100 points, while the NSE Nifty50 crossed 25,100 after climbing close to 50 points.

Among the top gainers in the markets today were Bharti Airtel, HCLTech, UltraTech Cement, PowerGrid and HDFC Bank and among the market laggards were stocks like TechMahindra, L&T, ITC, Adani Ports and Bajaj Finserv.

In the broader market indices, the Nifty Midcap 100 index was higher by 0.47 per cent and sectorally, the Nifty FMCG index dragged by 0.53 per cent while the Nifty Midsmall IT & Telecom index ended higher by 1.44 per cent.

What's Fuelling The Rally?

According to Prashanth Tapse, Senior Vice President (Research) at Mehta Equities Ltd, “Liquidity tailwinds, global market resilience, and a dovish stance from central banks are fuelling the rally.” He added that the upbeat global cues have helped sustain optimism across equity markets.

Additionally, on the domestic front, data from exchanges showed that Foreign Institutional Investors (FIIs) offloaded equities worth Rs 313.77 crore on Monday, while Domestic Institutional Investors (DIIs) emerged strong buyers, picking up shares worth Rs 5,036.39 crore.

Further, the rally has been driven by buying in major heavyweights like ICICI Bank, HDFC Bank, and Bharti Airtel, IANS reported.

Nifty continues to stay in an uptrend, maintaining its strength above the key 25,000 mark and the broader sentiment remains constructive, with investors showing steady buying interest on dips, the report cited market experts.

“The immediate hurdle lies between 25,100 and 25,220 -- a breakout and sustained move above this range could trigger the next leg of gains,” they added.

“Conversely, failure to cross this level may lead to a mild pullback toward 25,000, which is expected to attract renewed buying rather than selling pressure,” analysts stated.

While strong buying was also seen in oil and gas, pharma, consumer durables, healthcare, banking, auto, and energy sectors, selling pressure was visible in FMCG, PSU Bank, media, metal, and IT stocks.

According to analysts, sustained buying in index heavyweights and improving market sentiment continue to drive the current uptrend, even as investors remain cautious ahead of upcoming corporate earnings and global market cues.

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Markets Open Higher, Sensex Inches Closer To 82K, Nifty Crosses 25,100