Indian equity benchmarks continued their upward trajectory on Tuesday, October 7, with the Sensex advancing by 179 points to 81,969.32 as of 11:52 AM and the Nifty rising 43 points to 25,121.70.
In early trade, Sensex had risen as much as 400 points to 81,974.09 after gaining 183.97 points, while the Nifty climbed as much as 62.05 points to hit 25,139.70.
This marks the fourth consecutive day of gains, driven by robust buying in energy, metal, and financial stocks, alongside favorable global cues and expectations of a U.S. Federal Reserve rate cut.
The energy sector saw significant gains, with oil marketing companies benefiting from declining international crude oil prices and anticipations of government compensation for LPG losses.
Siemens Energy India and Petronet LNG were among the prominent gainers in this segment. Similarly, the metal sector experienced a boost, with the Nifty Metal index jumping 1.82% to 10,277.10, reflecting optimism over anticipated Fed rate cuts and a softer dollar index.
Investor sentiment was further uplifted by expectations of a Federal Reserve rate cut later this month. Such a move is anticipated to enhance global liquidity, making emerging markets like India more attractive to foreign investors.
This optimism was mirrored in global markets, with Asian indices trading higher and U.S. markets ending the previous session on a positive note.
In the financial sector, Bajaj Finance reported strong second-quarter results, with a 24% year-on-year increase in assets under management (AUM) to ₹4.62 lakh crore. The company also saw a 26% rise in new loans booked, totaling 12.17 million, and a 20% growth in its customer base to 110.64 million.
These figures underscore the resilience and growth potential of the financial services sector, contributing to the overall market rally.
Additionally, the Indian rupee strengthened slightly to 88.7375 against the U.S. dollar, supported by expected capital inflows. However, analysts caution that ongoing trade concerns with the U.S. could temper further gains.
Overall, the continued upward momentum in the markets reflects a combination of sectoral strength, favorable global conditions, and positive corporate earnings, positioning Indian equities for sustained growth in the near term.
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