Sensex, Nifty extend gains for second straight session as metal, auto stocks lead

MUMBAI — India’s benchmark equity indices extended their gains for a second consecutive session Tuesday, ending higher after a volatile day of trading marked by swings between gains and losses.

The Nifty 50 rose 0.74 percent, or 172.35 points, to close at 23,581.15, while the Sensex gained 568 points, or 0.75 percent, to settle at 76,070.84.

Analysts said the market’s near-term direction will hinge on whether the Nifty can sustain levels above 23,600. A breakout above that threshold could push the index toward the 23,800–24,000 range, though that zone is expected to act as strong resistance.

“On the downside, failure to sustain higher levels may lead to a pullback towards 23,500, followed by 23,300–23,350, where strong support is expected due to prior demand and open interest build-up,” an analyst said.

Gains were led by metal and auto stocks, with shares of Tata Steel, Mahindra & Mahindra, and Eternal among the top performers on the Nifty, helping drive the broader market higher.

Market volatility eased during the session, with the India VIX falling sharply. The volatility index declined more than 9 percent during the day and closed 8.39 percent lower at 19.79.

Broader markets also reflected the positive sentiment, as both mid-cap and small-cap stocks ended in positive territory.

On the sectoral front, metal and auto stocks outperformed the benchmark indices, while IT and FMCG stocks lagged and emerged as the top losers.

Despite intraday fluctuations, analysts said the market showed resilience, supported by selective buying in key sectors and easing volatility.

“The current market setup reflects a phase of tactical recovery rather than a full trend reversal,” a market expert said.

“While easing volatility and support at lower levels are aiding the bounce, persistent global uncertainties, sectoral divergence and resistance near higher levels suggest that markets may continue to witness selective participation with a cautious upward bias,” the analyst added. (Source: IANS)