Bargain hunters power bull charge on D Street: Sensex, Nifty rise 1.5%

The Indian equity benchmarks extended gains for a second straight session, with both key indices climbing up to 1.5 per cent on Tuesday — the sharpest single-day advance since February 4.

 

Investors snapped up beaten-down stocks on expectations that the markets may have bottomed out. The rally aligned with upbeat global sentiment, fuelled by stronger-than-expected retail sales in the US and China.

 

A weakening greenback against most global currencies further bolstered risk appetite.

 

Robust buying in financial and consumer discretionary stocks powered the rally.

 

The BSE Sensex jumped 1,131 points, or 1.5 per cent, to close at 75,301, while the NSE Nifty 50 gained 1.4 per cent to 22,834 — its highest level in nearly a month.

 

 

Broader markets outperformed, with midcap and smallcap indices marking their best gains since March 5. The Nifty Midcap 100 climbed 2.2 per cent; the Nifty Smallcap 100 rose 2.7 per cent.

 

The total market capitalisation of BSE-listed firms swelled by ₹7 trillion, reclaiming the ₹400 trillion mark. 

 

Foreign portfolio investors (FPIs) bought ₹695 crore of Indian equities on Tuesday, while domestic investors remained net buyers, adding ₹2,535 crore. This is only the fourth instance of net FPI inflows in 2025. So far this year, FPIs have pulled ₹1.45 trillion from equities in India. 

 

Major Asian markets, including Seoul, Tokyo, Shanghai, and Hong Kong, closed higher. European stocks also traded in positive territory, mirroring Monday’s gains in the US.

 

Since its recent lows, the Nifty 50 has rebounded roughly 4 per cent.

 

Market experts suggest equities may have bottomed out but caution that volatility could persist. “The worst seems behind us in terms of economic growth and earnings, with prices having corrected significantly. Still, we anticipate a gradual recovery amid near-term volatility, driven by elevated domestic exposure to small and midcap stocks and global uncertainties, particularly around potential reciprocal tariffs that could hit India hard,” said Sunil Koul, emerging market equity strategist at Goldman Sachs.

 

Morgan Stanley signalled a “strong buy” zone in a recent note, with Chief India Equity Strategist Ridham Desai writing, “Valuations are the most attractive since the Covid pandemic. The market has overlooked the RBI’s policy shift, a robust government Budget, and other positives since early February. India’s low-beta profile makes it a standout in today’s uncertain macroenvironment.”

 

Some analysts anticipate easing of foreign investor outflows.

 

“The worst of FPI outflows may be over. With the dollar peaking and US policies denting sentiment, capital could flow back to emerging markets if earnings growth and valuations align,” said Shridatta Bhandwaldar, head of equities at Canara Robeco AMC.

 

All sectoral indices ended higher Tuesday. Nifty Bank climbed nearly 2 per cent, while Nifty Auto, Media, Metal, and Realty each surged more than 2 per cent. Among Sensex stocks, Zomato led gains with a 7.1 per cent jump, followed by Mahindra & Mahindra, ICICI Bank, and Tata Motors. Only four stocks, including Bajaj Finserv, closed lower.

 

Market breadth was strong, with 2,766 stocks advancing and 1,276 declining.