CHENNAI: Indian equity markets witnessed a modest recovery on Tuesday after a subdued session, with key indices Sensex and Nifty closing with gains led by buying in the final hour of trading. Investor sentiment remained cautious following recent tariff announcements by US President Donald Trump affecting several countries.
Market participants are now closely watching for updates on the India-US trade deal, expected to play a critical role in mitigating the impact of potential steep tariffs on Indian exports to the US.
On Tuesday, the BSE Sensex rose by 270.01 points, or 0.32%, ending at 83,712.5, while the NSE Nifty 50 gained 61.2 points, or 0.24%, closing at 25,522.5.
However, the broader market indices showed some weakness, with the Nifty MidCap 100 declining 0.17% and the Nifty SmallCap 100 falling 0.29%, indicating a cautious approach among investors beyond the large-cap stocks.
Sectoral Performance
The Nifty Realty index outperformed the broader market, advancing 0.99%, bolstered by strong gains in stocks such as Brigade Enterprises, Prestige Estates, DLF, Anant Raj, and Phoenix Mills. Other sectoral winners included Nifty Bank, Financial Services, Information Technology, and Energy, which managed to close with positive returns.
Conversely, defensive and cyclical sectors such as Consumer Durables, Pharmaceuticals, Automobile, and Metals saw declines, reflecting investor concerns over global trade uncertainties and input cost pressures.
Stock Highlights
Among the Sensex constituents, 18 out of 30 stocks ended in positive territory. Top gainers were Kotak Mahindra Bank, Eicher Motors, Asian Paints, NTPC, Bharat Electronics and Adani Ports. While, on the downside, notable laggards included Titan, Trent, Axis Bank, Maruti Suzuki, Hindustan Unilever and Sun Pharma.
Market Volatility and Outlook
The India VIX, a key measure of market volatility, eased 2.9% to settle at 12.19 points, indicating a marginal reduction in near-term uncertainty.
Looking ahead, investors remain focused on the developments related to the India-US trade negotiations. Any positive outcome could provide significant support to export-oriented sectors and restore market confidence. Global cues, especially from the US and China, along with domestic corporate earnings due later this month, will also influence market direction.