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Market Highlights: Sensex Ends 320 Points Higher After Volatile Session; Nifty Holds Above 25,150

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Indian equity markets wrapped up the holiday-shortened trading week on a positive note on Tuesday, shrugging off intraday volatility to close firmly in the green. The Sensex gained 320 points, while the Nifty 50 managed to stay above the crucial 25,150 mark, supported by selective buying in banking, metals, and PSU stocks.

Investor sentiment improved after India and the European Union officially signed their long-awaited free trade agreement earlier in the day. The deal, described by policymakers as a landmark development, lifted confidence around India’s medium-term export and manufacturing outlook, even as broader market participation remained cautious.

Choppy Session, Steady Close

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The session began on a mixed footing, with early gains capped by weakness across several heavyweight sectors. Auto, FMCG, realty, media, and IT stocks faced selling pressure for most of the day, keeping the benchmarks range-bound. However, strong moves in select financial stocks and metal counters helped offset losses elsewhere, allowing indices to end higher.

Axis Bank emerged as one of the top performers, jumping nearly 5 percent after renewed buying interest, while Adani Ports climbed close to 4 percent, adding meaningful support to the benchmarks. PSU banks also contributed positively, as investors selectively picked stocks with stable earnings visibility.

Despite the positive close, market breadth remained uneven, reflecting a defensive undertone among investors. Analysts noted that while headline indices looked strong, participation was narrow, suggesting traders are still cautious amid global uncertainties

 

Sectoral Performance: Gains and Pressure Points

Metals and PSU banks led the gains, supported by firm commodity prices and expectations of improved demand following the India-EU trade pact. Select financial stocks also attracted buying, helping stabilise the indices during afternoon trade.

On the downside, IT stocks continued to struggle, pressured by concerns over global tech spending and currency fluctuations. FMCG and auto stocks also remained under pressure, as investors rotated out of defensives and awaited clearer signals on demand recovery.

Among individual stocks, Karur Vysya Bank, DCB Bank, and Go Fashion featured among the top gainers, posting sharp intraday advances. On the flip side, IFB Industries, Syngene International, and JSW Energy were among the notable laggards, witnessing steep declines.

Global Markets Offer Mild Support

Global cues were moderately supportive during the session. S&P 500 futures rose around 0.3 percent, while Nasdaq 100 futures gained nearly 0.6 percent, indicating a stable start for U.S. markets later in the day. Asian markets traded higher, with Hong Kong’s Hang Seng rising over 1 percent and the MSCI Asia Pacific Index gaining close to 0.8 percent.

European futures also pointed to a positive opening, with Euro Stoxx 50 futures up around 0.4 percent. However, investors globally remained alert to ongoing trade tensions and currency movements, particularly after recent volatility in the U.S. dollar.

Currency and Commodities Update

The Indian rupee strengthened modestly, rising about 0.24 percent to trade near 91.72 against the U.S. dollar by late afternoon. Currency traders cited improved risk sentiment and mild dollar weakness as supporting factors.

In commodities, aluminium, zinc, and copper futures edged higher on the back of steady spot demand and selective buying. Analysts noted that while prices are seeing incremental gains, the overall trend remains cautious due to mixed global demand signals.

Outlook: Selective and Stock-Specific

Market experts believe the near-term outlook remains constructive but selective. While the India-EU trade deal has boosted sentiment, investors are expected to stay stock-specific, focusing on companies with strong balance sheets, earnings visibility, and export exposure.
For now, holding above the 25,150 level keeps the Nifty in a technically stable zone, but sustained upside may depend on earnings momentum and global cues in the coming sessions.

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