Indian Equities Extend Recovery Ahead of RBI Policy Decision

Indian equities extended their recovery for a second straight session on Tuesday, driven by lower crude oil prices, firm Asian markets, and strong quarterly business updates.

Market Gains

The Nifty 50 rose 220.35 points, or 0.98%, to close at 22,776.10, while the Sensex gained 685.34 points, or 0.95%, to settle at 73,067.81. Buying was broad-based, led by capital goods, FMCG, oil and gas, and healthcare stocks, with 2,455 stocks advancing and 1,125 declining. Trent was a standout performer, jumping about 13% to a two-year high after reporting 23% revenue growth for the quarter.

Banking Sector

Nifty Bank gained 414.30 points, or 0.76%, to close at 55,128.40, supported by private lenders. Kotak Mahindra Bank rose nearly 4% on strong growth in loans and deposits, while IndusInd Bank and Axis Bank also posted gains. Meanwhile, MarketSmith India recommended buying shares of Sky Gold and Diamonds Limited at a price of 858 rupees and Black Box Limited at 840 rupees.

Context

Stock markets often react strongly to upcoming central bank policy decisions as investors adjust positions based on expected interest rate changes. Broad market breadth and sector-specific earnings updates regularly serve as key indicators of overall investor sentiment during recovery phases.