At 9:30 a.m., the Sensex rose 387.26 points, a gain of 0.49%, to close at 78,816.21. The Nifty also advanced, up 6.05 points or 0.025%, reaching 24,620.95. Both indices moved higher, reflecting positive market sentiment.
The rally was supported by strong global cues. Wall Street finished the night at new record highs, lifting investor mood worldwide.
Asian markets followed suit, buoyed by optimism over technology earnings and hopes that the Strait of Hormuz will reopen. Japan’s Nikkei 225 climbed 3 percent, while South Korea’s Kospi gained 3.4 percent.
Foreign institutional investors were net buyers on Tuesday, buying stocks worth ₹2,446.47 crore. This inflow helped keep the Indian market buoyant.
The Reserve Bank of India is expected to keep policy rates unchanged. A Reuters poll shows Governor Sanjay Malhotra may adopt a slightly hawkish stance due to inflation risks from volatile crude prices and a shortfall in monsoon rainfall.
The RBI’s decision will be announced at 10:00 a.m. today. Market participants are watching closely for any signals that could influence the direction of the markets.
Anand James, Chief Market Strategist at Geojit Investments, said the initial weakness eased after the market touched 24,500. He expects a recovery swing in the second half, with upside hopes now stalled at 24,775. He also noted that the downside marker has moved up toward 24,530.