After a significant decline in the domestic stock market on Monday, positive signals from the global market led to a strong recovery on Tuesday. The Sensex opened with a sharp gain of 350 points, while the Nifty surged by nearly 120 points. The Bank Nifty also witnessed an impressive rise of 400 points. Government stocks such as BEL, NTPC, and SBI showed an upward trend, along with private banking stocks like IndusInd Bank and Axis Bank, which added to the market momentum.
The Nifty, buoyed by these developments, recorded a gain of 120 points early in the trading session. Contributing to the optimism, the US market experienced a substantial recovery on Monday. Domestic funds took advantage of Monday’s dip, purchasing over ₹8,000 crore worth of stocks, while Foreign Institutional Investors (FIIs) net sold ₹4,065 crore, including cash, index, and share futures.
The Indian economy provided additional reasons for optimism. Retail inflation in December hit a four-month low, with the Consumer Price Index (CPI) declining to 5.22% from 5.5%, thanks to easing food inflation. In another positive development, net direct tax collections since April surged by 16%, reaching approximately ₹17 lakh crore. The total tax collection increased by 20%, signaling a robust economic performance.
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Global markets painted a mixed picture. On Monday, the Dow Jones gained 350 points, marking a recovery after four days of declines, while the Nasdaq, despite recovering 250 points during the session, ended with a loss of 75 points. The GIFT Nifty closed 125 points higher at 23,300. Meanwhile, Dow futures added 50 points. However, Japan’s Nikkei dropped 500 points after returning from a holiday.
In the commodities market, gold saw a sharp correction, falling $35 to $2,685 after four consecutive sessions of gains. Silver also declined by 3%, settling at $31. Crude oil prices remained stable around $81 per barrel. Corporate earnings will also influence trading sentiment today. HCL Tech's results released yesterday were mixed, while Angel One reported a 24% rise in operating profit. These developments are likely to keep these stocks in focus during today’s trading session.