The stock market extended gains for a second session on Tuesday to recoup the entire loss since the US tariff announcement. At close, Sensex was up 1,577.63 points or 2.10% at 76,734.89, and the Nifty 50 was up 500 points or 2.19% at 23,328.55.
BSE Midcap and smallcap indices rose 3% each. India VIX, the measure of volatility in the market, ended the session 19% lower.
The overall market capitalisation of firms listed on the BSE rose to nearly ₹412 lakh crore from nearly ₹402 lakh crore in the previous session.
In the last two sessions, Sensex has jumped 3.9% while Nifty 50 surged 4.1%. Investors have got richer by about ₹18 lakh crore.
Among the sectors, all major indices ended higher with Nifty Realty up by 5.64% ending as the top gainer. Nifty Auto was up 3.39%, Metal by 3.20%, Media up by 2.97%.
Nifty Bank ended 2.70% higher. Financial Services was up 2.95%, and Private Bank was up 2.82%.
Auto and banking stocks surged on hopes of tariff relief and easing deposit rates.
Tata Motors’ shares defy market sentiment and surge over 5% amidst market uncertainty over auto sector tariffs.
On Nifty50, the top gainers were IndusInd Bank (6.67%), Shriram Finance (5.17%) and Tata Motors (4.61%). ITC down by 0.28% was the only stock that ended lower in the Nifty 50 index.
Nearly 90 stocks on the BSE tested 52-week high, including Coromandel International, SBI Cards, Eicher Motors, Chambal Fertilisers, Bajaj Finance, Interglobe Aviation, Bharti Airtel, Narayana Hrudayalaya, among others.
Further the share of Mazagon Dock rises almost 10% ahead of the record date for 2nd interim dividend payout.
ITC shares tumbled by 0.9%, and HUL also slumped by close to 1%, bringing down NIFTY FMCG shares.
Expectations of further rate cuts, declining inflation, and hopes for a healthy corporate earnings season also support market sentiment.
The rally was driven by optimism around the deferral of tariffs and the recent exemptions on select products.