Indian shares rebounded on Tuesday, in line with global stocks on easing US rate worries, while investors kept tabs on the military conflict in the Middle East.
The NSE Nifty 50 index (NSEI) was up 0.53 per cent at 19,616.15 as of 10:25 am IST, and the S&P BSE Sensex (BSESN) rose 0.56 per cent to 65,874.50.
Twelve of the 13 major sectoral indexes logged gains. High weightage financials (NIFTYFIN) rose 0.5 per cent while public sector banks (NIFTYPSU) rebounded from the previous session’s loss, adding over 1.3 per cent.
Realty index (NIFTYREAL) climbed 3 per cent following a 3 per cent jump in Phoenix Mills (PHOE.NS) on a strong quarterly update.
Auto stocks (NIFTYAUTO) added 1.25 per cent, led by a 2 per cent rise in Tata Motors (TAMO.NS) after CLSA projected a rise in its fiscal 2025 profit on the back of improved sales volumes.
The more domestic-focussed small- and mid-caps outperformed the blue-chips, rising nearly 1 per cent each.
“With the valuations in industrials, consumer discretionary, mid- and small-caps being at a premium to their long period averages, we expect sector rotation in Indian equities to continue,” analysts at Motilal Oswal Financial Services wrote in a note.
“Valuations will become the most important driver for stock picking,” they added.
Wall Street equities closed higher overnight after two US Federal Reserve officials said further rate hikes may not be needed, easing rate concerns. Asian markets edged higher.
Meanwhile, military clashes between Israel and Hamas weighed on risk sentiment, spurring purchase of safe-haven assets like gold and the US dollar.
Brent crude futures hovered around $88 per barrel on Tuesday.
Adani Ports (APSE.NS) rose 3 per cent, rebounding from a nearly 5 per cent slide on Monday on worries over the conflict in Israel, where the company owns a major port.
Mazagon Dock Shipbuilders (MAZG.NS) climbed 7 per cent on signing letter of intent with a European client to construct multi-purpose hybrid power vessels.
Reuters
