The BSE Sensex surged 1,131 points, or 1.5%, to close at 75,301, while the NSE Nifty 50 advanced 1.4% to 22,834—its highest level in almost a month. Broader markets outperformed, with midcap and smallcap indices posting their best gains since March 5. Indian equity benchmarks rose for the second straight day,reaching 1.5% on Tuesday—the strongest single-day gain since February 4. The rally was driven by strong buying in financial and consumer discretionary stocks.
Both the Nifty Smallcap 100 and the Nifty Midcap 100 saw increases of 2.2% and 2.7%,respectively.Regaining the Rs 400 trillion threshold,the overall market capitalization of companies listed on the BSE increased by Rs 7 trillion.
On Tuesday,major Asian markets closed higher,including those in Shanghai,Tokyo,Hong Kong,and Seoul. Following Monday’s gains in the US, European markets were trading in positive territory.
The Nifty has increased by about 4% since its most recent lows.
Although they warn that volatility may continue,experts speculate that the market may have bottomed out.
“With prices having drastically corrected,it appears that the worst is behind us in terms of economic growth and earnings. According to Sunil Koul,Goldman Sachs’ emerging market equities analyst,”We still expect a gradual recovery amid near-term volatility,driven by elevated domestic exposure to small and midcaps and global uncertainties,particularly around potential reciprocal tariffs that could hit India hard.”
“Strong buy territory” was indicated by Morgan Stanley in a recent note. Chief India equity strategist Ridham Desai wrote,”Valuations are the most attractive since the Covid pandemic.” Since early February,the market has disregarded the RBI’s policy change,a strong government budget,and other advantages. India stands out in the current uncertain macro environment due to its low-beta profile.
On Tuesday, FPIs made an investment of Rs 695 crore in domestic stocks, while domestic investors also made a net purchase of Rs 2,535 crore. This is just the fourth occasion in 2025 that FPI purchase has been profitable. FPIs have taken out Rs 1.45 trillion from local stocks so far this year.
Additionally,experts anticipate that selling by foreign portfolio investors (FPIs) may ease.
It might be the end of the worst FPI outflows. If profits growth and prices line up,money may return to developing markets as the dollar peaks and US policies dampen sentiment,according to Shridatta Bhandwaldar,head of equities at Canara Robeco AMC.
On Tuesday,all sectoral indices saw gains. While Nifty Auto,Media,Metal,and Realty all had increases of more than 2%,Nifty Bank saw gains of around 2%.
With a 7.1% increase,Zomato led the Sensex stocks,followed by Tata Motors,ICICI Bank, and Mahindra & Mahindra. Bajaj Finserv was one of only four equities that ended the day down.
With 1,276 stocks falling and 2,766 stocks rising,the market’s breadth was robust.