Sensex Jumps 685 Points, Nifty Reclaims 22,750 Ahead of RBI Policy Decision
Mumbai — Indian equity benchmarks closed sharply higher Tuesday as investors bought pharma, private banking and oil and gas stocks ahead of the Reserve Bank of India’s policy decision.
The Sensex climbed 685.34 points, or 0.95 percent, to close at 73,067.81. The Nifty gained 220.35 points, or 0.98 percent, to end at 22,776.10.
Market sentiment remained positive throughout the session, with buying in heavyweight stocks helping the benchmarks extend their gains.
Investors were focused on the RBI policy announcement for signals on interest rates, liquidity conditions and the central bank’s outlook for the economy.
Among Nifty constituents, Trent, BSE and Kotak Mahindra Bank were among the top gainers.
The broader market also advanced, with the Nifty MidCap index rising 1.08 percent and the Nifty SmallCap index gaining 1.56 percent.
Pharma and chemical stocks led sectoral gains. The Nifty Pharma index was the best-performing sectoral gauge, followed by the Nifty Chemical index.
Information technology stocks, however, saw some profit-taking, making the Nifty IT index the biggest sectoral loser of the session.
Market analysts said the Nifty could move toward the 23,000 level if it sustains a move above 22,800. Immediate support is seen around 22,600, followed by 22,500.
“The RSI has moved into the mid-30s, pointing to a gradual improvement in momentum, while the MACD histogram has eased further from its negative reading, suggesting that selling pressure is moderating,” a market watcher said.
Analysts said lower crude oil prices had also supported domestic equities and helped the benchmarks recover for a second consecutive session, though global and macroeconomic risks remain.
“The near-term market bias therefore remains cautiously constructive. The decline in crude prices has provided a meaningful tailwind and helped benchmarks recover for a second straight session, but the rebound still faces several macro risks,” analysts said. (Source: IANS)
