Sensex, Nifty end higher for 2nd straight day: 5 reasons why market rallied today
Indian equity markets ended higher for the second straight session on Tuesday, with the Sensex rising 685 points to 73,068 and the Nifty gaining 220 points to 22,776. Falling crude prices, largely in-line quarterly updates and broad-based buying supported the gains, while IT and hospital stocks remained under pressure.
The equity benchmark indices BSE Sensex and NSE Nifty on Tuesday ended higher for the second straight session, with the Sensex rising 685 points to 73,068 and the Nifty gaining 220 points to 22,776, reclaiming the 22,700 mark.The Nifty Bank gained 414 points to 55,128, while the Nifty Midcap index rose 638 points to 59,761. Market breadth was firmly in favour of advances, with the advance-decline ratio at 2:1.Why did the market rise today?1. Brent crude falls below $100Crude oil prices fell, with Brent crude back below $100 per barrel.
The move lifted market sentiment and supported the broader market gains.ALSO READ | Angel One shares gain after trading activity recovers in September, MTF book growth continues2. Quarterly updates largely in lineQuarterly business updates were largely in line with expectations so far. Kotak Mahindra Bank gained 4% after its quarterly update, while Trent surged 12% on better-than-expected growth in the second quarter.3.
Reliance supports NiftyReliance Industries saw buying interest during the session and lifted the Nifty by around 60 points. The FMCG basket also gained more than 1% as most companies reported healthy quarterly updates.4. Buying continues in capital market, AC stocksCapital market stocks continued to see buying interest, with BSE rising 4%.
Most air conditioner companies gained on expectations of strong demand, while PG Electroplast surged 8%.ALSO READ | Steamhouse India shares gain 6% after Q1 profit jumps 80%, EBITDA rises 60%5. IT, hospital stocks remain under pressureThe IT sector remained a drag, with the sectoral index falling nearly 1%. Hospital stocks remained under pressure ahead of a Supreme Court hearing, with Max Healthcare emerging as the top loser.PB Fintech gained 6% after the Insurance Brokers Association wrote to the Prime Minister on an Insurance Regulatory and Development Authority of India paper.The market capitalisation of BSE-listed companies increased by nearly ₹6 lakh crore over the past two sessions.From the Sensex basket, Trent Ltd, Kotak Mahindra Bank Ltd, Hindustan Aeronautics Ltd, Nestle India Ltd, Jio Financial Services Ltd and InterGlobe Aviation Ltd were the major gainers.ALSO READ | Trent up 11%, IDFC First Bank down 3%: Q2 business updates drive stock movement on Nifty500Coal India Ltd, Max Healthcare Institute Ltd, UltraTech Cement Ltd, Shriram Finance Ltd, ITC Ltd and Bajaj Finance Ltd were the biggest laggards.
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