Indian Stock Market Indices Extend Winning Streak on Strong Earnings

Indian benchmark stock indices rose for the fourth consecutive session on Tuesday, driven by strong domestic corporate earnings and an unwinding of the global artificial intelligence trade.

The BSE Sensex climbed 1,225.07 points, or 1.62 percent, to finish at 76,917.85, while the Nifty50 added 370.05 points, or 1.58 percent, to close at 23,810.85.

The rally added nearly 4 lakh crore rupees to the combined market capitalization of companies listed on the BSE, bringing the total valuation to 486 lakh crore rupees, according to the Times of India.

Investors responded to softer oil prices and rising expectations that the government might review the long-term capital gains tax structure following recent discussions.

Sector performance varied across the exchange during the session, with the Nifty FMCG index outperforming peers by gaining 3 percent, while the Nifty PSU Bank sector declined the most.

Broader markets also participated in the upward movement, as the Nifty MidCap 100 and the Nifty SmallCap 100 rose 1.06 percent and 0.31 percent, respectively.

Market analysts suggested that the current economic environment remains favourable for sustained equity momentum if foreign institutional investors continue their buying pattern.

"Decline in Brent crude to $104, further weakening of the AI trade, continuing flow of good Q2 results and FIIs turning buyers have potential to accelerate the ongoing rally," said V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.

Vijayakumar noted that heavy delivery-based buying in select mega-cap equities triggered massive short covering and pushed valuations higher after previous sessions of decline.

"The circumstances have changed and, therefore, the voices of concern are louder," said Finance Minister Nirmala Sitharaman, addressing requests from overseas investors regarding taxation policies.

Sitharaman added that administration officials would review the feedback closely to maintain economic growth above 7 percent.

Meanwhile, Moneycontrol reported that the market experienced profit booking at higher levels after both major indices gained about 5 percent over the preceding four trading sessions.

Market participants continue to monitor upcoming political events and corporate updates to determine whether the recent bullish sentiment will persist through the remainder of the week.