Sensex, Nifty end in green, climb 1%

The benchmark equity indices ended in the positive territory on Tuesday. BSE Sensex gained 584.81 points, or 0.72 per cent, to end at 81,634.8 levels. Nifty50 closed at 25,013.15, up 217.40 points or 0.88 per cent.

According to analysts, Nifty started the day on a positive note, and after initial volatility, remained buoyant throughout the day, ultimately closing on a positive note at 25,013.15. Bank Nifty opened on a positive note, but after initial volatility, witnessed a strong recovery, helping the index to settle around the 51,000 level, closing at 51,021. It is worth noting that Nifty has witnessed a correction of nearly six per cent from its all-time high. However, this can be viewed as a healthy pullback, as the broader market structure remains firm, say market analysts. Experts are of the view that the market had been in an overbought zone for an extended period, and this decline was necessary to encourage fresh buying interest at lower levels.

In the broader markets, the BSE MidCap index rose 1.86 per cent, and the BSE SmallCap index 2.44 per cent. The broader indices outperformed the benchmark indices today.

Among sectors, all indices (barring the Nifty Metal index) such as the Nifty Media index, Nifty Auto and Nifty Pharma rallied in trade today.

Also, the volatility index, INDIA VIX, cooled off by 3.26 per cent, settling at 14.59, indicating a drop in market volatility. Commenting on the outlook, Vishnu Kant Upadhyay, AVP (Research and Advisory), Master Capital Services, said, “We expect Nifty to trade within a broader horizontal range between 24,400 and 25,650 in the near term. A decisive breakout above the upper range could propel prices towards 26,280, with the potential to reach 26,500 thereafter.” Investors were also waiting for the Reserve Bank of India’s monetary policy decision, slated for Wednesday.

The results of the recent state elections in Haryana and J&K may keep the markets on alert.