Indian benchmark equity indices closed higher on Tuesday, led by IT stocks on improving prospects of a soft landing in the US, and supported by a sustained rally in oil marketing companies.

The 30-share BSE benchmark Sensex surged 455 points or 0.63% to settle at 72,186. The broader NSE Nifty gained 158 points or 0.72% to end at 21,929.

From the Senses pack, HCL Tech, TCS, Maruti and Wipro were the top gainers, rising 3.5-4.5%. L&T, Infosys, Tata Steel, Bharti Airtel, SBI, and Tech Mahindra also closed higher, while Power Grid, IndusInd Bank, ITC, Kotak Bank and Bajaj Finserv closed with cuts.

Among individual stocks, Yes Bank closed 12% higher after the Reserve Bank of India’s (RBI’s) nod to HDFC Bank for acquiring up to 9.50% of the paid-up share capital or voting rights of the bank.

Zydus Lifesciences closed nearly 5% higher after the company said its board would consider a proposal for buyback of shares on February 9.

Sector-wise, Nifty IT rose 2.9%, led by HCL Tech, TCS, and Wipro. Nifty Oil & Gas, Auto, Metal, Pharma, and Healthcare also closed higher.Meanwhile, the market capitalisation of all listed companies on BSE increased by Rs 4.27 lakh crore to Rs 386.88 lakh crore. The market breadth was skewed in the favour of the bulls. About 2,353 stocks gained, 1,506 declined, and 85 remained unchanged on the BSE.Data showed foreign portfolio investors added IT stocks worth Rs 4,485 crore ($540.01 million) on a net basis in January despite selling in other major sectors, indicating steady inflows into IT.

Expert Take

“The market exhibited a positive breadth, registering moderate gains, with investors showing reluctance to significantly trim their positions ahead of the RBI MPC meeting. Expectations for a dovish monetary policy buoyed sentiment in the bond market. Meanwhile, oil & gas stocks held a modest advance as the market weighed down geopolitical risks in the Middle East and awaited improvements in the weekly US crude inventory on Tuesday,” said Vinod Nair, Geojit Financial Services.

Aditya Gaggar, director of Progressive Shares, said, “On the daily chart, the index has formed a bullish candle with the downside being protected at 21,700 while to resume its primary uptrend, it has to breach its hurdle of 22,100.”

Global Markets

World share indices rose on Tuesday, boosted by a sharp rise in Chinese stocks as Beijing ramped up efforts to put a floor under its slumping market.

The CSI300 jumped 3.5%% in the wake of Tuesday’s developments, its biggest one-day percentage gain since 2022, while Hong Kong’s Hang Seng Index rose 4%, its most in a day in six months.

Nasdaq futures rose 0.3%, while S&P 500 futures edged 0.1% higher.

Oil Impact

Oil prices held broadly steady on Tuesday as investors waited to see whether a Middle East trip by top US diplomat Antony Blinken will bring a halt to the Gaza war, which has raised concerns about supplies from the major producing region.

Brent crude futures dipped 8 cents to $77.91 a barrel, while US West Texas Intermediate crude futures fell 13 cents to $72.65. Both contracts gained nearly 1% on Monday, rising for the first time in four sessions.

Rupee Ends Flat

The Indian rupee ended unchanged on Tuesday as mixed cues from the strength in most of its Asian peers, despite a jump in US bond yields, kept the pair in a narrow range throughout the session.

The rupee closed at 83.0550 against the US dollar, unchanged from its close in the previous session. The rupee hovered between 83.03 and 83.0650 during the session.

(With inputs from agencies)

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