Indian benchmark indices extended their gains for the second consecutive session on Tuesday, primarily driven by a strong performance in banking stocks, with State Bank of India leading the charge.
The BSE Sensex closed at 80,369.03, rising 363.99 points or 0.45 per cent, while the Nifty 50 ended at 24,466.85, advancing 127.70 points or 0.52 per cent.
State Bank of India emerged as the top gainer, surging 5.05 per cent, followed by Bharat Electronics Limited (up 4.89 per cent), Eicher Motors (up 3.38 per cent), HDFC Life (up 3.32 per cent), and SBI Life (up 3.18 per cent).
The auto sector witnessed significant pressure with Maruti Suzuki leading the losses, dropping 4.16 per cent, followed by Tata Motors (-3.92 per cent), Hero MotoCorp (-2.88 per cent), Dr Reddy’s Laboratories (-2.52 per cent), and Sun Pharmaceutical Industries (-2.04 per cent).
The banking sector demonstrated remarkable strength, with the Bank Nifty climbing 1,061.40 points or 2.07 per cent to close at 52,320.70. The Nifty Financial Services index also posted strong gains, rising 495.95 points or 2.08 per cent to end at 24,357.80.
“The domestic market is trying to show some signs of a recovery from the recent lows as the Diwali festival approaches. A notable decline in crude oil prices is bolstering market sentiment, though it also indicates a potential slowdown in global demand,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market breadth remained positive, with 2,242 stocks advancing and 1,623 declining on the BSE. A total of 3,991 stocks were traded, with 126 remaining unchanged. The session saw 132 stocks reaching their 52-week highs, while 78 touched their 52-week lows. Thirteen stocks hit the upper circuit, while two reached the lower circuit.
At market close on 29th October 2024, SBI led the gainers among Sensex stocks, rising 5.13 per cent to ₹832.65. ICICI Bank followed with a gain of 3.08 per cent, while Bajaj Finserv (+2.18 per cent), NTPC (+2.11 per cent), and Bajaj Finance (+1.61 per cent) also posted gains.
Among the losers, Maruti Suzuki fell 4.11 per cent, with Tata Motors close behind at -4.06 per cent. Sun Pharma, Bharti Airtel, and IndusInd Bank recorded declines of 1.67 per cent, 1.61 per cent, and 1.53 per cent, respectively.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted, “Although markets were a bit volatile in early trades, key benchmark indices recouped losses to end firm for the second straight session as investors covered short positions in the beaten down banking stocks ahead of monthly F&O expiry on Thursday.”
The broader markets outperformed the benchmark indices, with the Nifty Next 50 rising 507.80 points or 0.73 per cent to 70,538.35, and the Nifty Midcap Select gaining 124 points or 1.00 per cent to close at 12,524.20.
According to Deepak Jasani, Head of Retail Research at HDFC Securities, “Banks, including PSU Banks, did well for the second consecutive session. Broad market indices rose more than the Nifty even as the advance decline ratio rose to 1.47:1.”
The market showed resilience despite initial volatility, with the Nifty finding support around the 24,150-24,200 levels.
“The benchmark index experienced a subdued opening today, maintaining a slight selling pressure from the prior trading session during the initial hour. However, it attracted modest buying interest near 24140 and saw a recovery primarily driven by a more robust performance in the Bank Nifty,” said Ameya Ranadive, Senior Technical Analyst at StoxBox.
Looking ahead, market experts suggest that stock-specific action related to ongoing second-quarter earnings, which have been largely weak, is expected to drive market sentiment in the near term.
PSU Banks have shown strength following positive initial earnings reports, while the auto sector’s decline has been attributed to disappointing results.
