The Indian equity benchmark indices ended trading on Tuesday in green. Beating global apprehensions following a crash in the tech stocks, the domestic indices settled in the markets on a high.
The BSE Sensex closed the session just above the 75,900 mark, climbing more than 500 points, while the NSE Nifty50 rallied 128 points to end trading at 22,957.25.
On the 30-share Sensex, the major gainers for the day included Bajaj Finance, Axis Bank, Bajaj Finserv, HDFC Bank, and Tata Motors. Meanwhile, Sun Pharma, L&T, NTPC, PowerGrid, and ITC stood among the laggards for the session.
In the broader markets, the indices witnessed major volatility. The Nifty Smallcap 50 index dominated in red and closed 1.94 per cent lower. On the other hand, the Nifty50 and Nifty100 indices climbed 0.56 per cent and 0.52 per cent respectively.
Why Markets Recovered?
The recovery in the key indices was attributed to intense buying seen in banking and rate-sensitive stocks as the Reserve Bank of India decided to infuse liquidity in the financial system.
Vinod Nair, Head of Research, Geojit Financial Services, said, "The national benchmark indices demonstrated optimism today, primarily driven by gains in the banking sector following the RBI's announcement of open market interventions to address liquidity concerns. Large-cap stocks outperformed, as their valuations have now reached fair levels and are further supported by expectations that the market correction is nearing its bottom."
Tech Stocks Crash
The Asian markets saw Tokyo settling in red, while Hong Kong closed the day higher. European markets traded in the positive territory in the early session, while US markets ended lower on Monday following a crash in the tech stocks. The launch of the Chinese artificial intelligence chatbot DeepSeek shook the world as investors questioned the surging costs and valuations of Western AI model such as OpenAI and ChatGPT. This led to the largest ever single-day drop seen in a stock in the US history as Nvidia shares crashed 17 per cent on Monday.