(Photo : sensex)
Indian stocks

• Indian stock market saw a positive shift with Sensex and Nifty ending in the green, led by Adani Ports.
• Vikram Kasat attributes this trend to positive cues from Asian markets and expectations of a US Federal Reserve rate cut.
• Rupak De notes a rise in bullish sentiment as Nifty moved above the 38.20% Fibonacci retracement level.
• Despite the positive shift, investors remain cautious ahead of the RBI policy due to potential GDP forecast cut.

The Indian stock market witnessed a significant shift as the benchmark equity indices, Sensex and Nifty, ended in the green on Tuesday. This positive trend was primarily driven by heavy buying in the PSU Bank and media sectors, which were the most active at the end of the trading day. Adani Ports, a major player in the BSE's benchmark, emerged as the top gainer, settling at an impressive Rs 1,288.80 after a surge of Rs 73.20, or 6.02 per cent.

The Sensex ended at 80,845.75, higher by 597.67 points, or 0.74 per cent. Similarly, the Nifty 50 ended at 24,457.15, up by 181.10 points, or 0.75 per cent. These figures indicate a robust performance by the Indian benchmark equity indices, which have been on a winning streak for three consecutive sessions.

Market Dynamics and Key Players

Vikram Kasat, the Head of Advisory at PL Capital, attributed this positive trend to several factors. He noted that the indices edged higher due to positive cues from Asian markets, which significantly lifted investor sentiment. He further explained that the gains were primarily driven by metal and financial stocks. These sectors were fueled by expectations of a 25 basis-point rate cut by the U.S. Federal Reserve later this month, following dovish remarks from key officials.

The market breadth remained robust, with advancing stocks significantly outpacing decliners. This is a positive sign for the market, indicating a healthy and competitive trading environment. On the broader market front, the Nifty Midcap 100 was at 57,509, higher by 508.15 points, or 0.89 per cent, while the Nifty SmallCap 100 ended at 19,003.55, higher by 132.15 points, or 0.83 per cent.

Sectoral Performance and Investor Sentiment

Rupak De, a Senior Technical Analyst at LKP Securities, provided further insight into the market's performance. He noted that the Nifty witnessed another day of bullishness as the index moved above the 38.20 per cent Fibonacci retracement level of the previous decline from 26,277 to 23,263. This movement indicates a rise in bullish sentiment, a positive sign for the market.

On the sectoral front, Nifty PSU Bank, media, metal, energy, infra, PSE, commodities, auto, IT and financial services ended in green, while Nifty Pharma and FMCG ended in red. This sectoral performance provides a comprehensive view of the market's dynamics, highlighting the sectors that performed well and those that did not.

In the Sensex pack, Adani Ports, NTPC, Axis Bank, SBI, L&T, UltraTech Cement, Tata Motors, and HDFC Bank were the top gainers. On the other hand, Bharti Airtel, ITC, Asian Paints, Sun Pharma and Kotak Mahindra Bank were the top losers.

Market Outlook and Future Predictions

However, investors remain marginally cautious ahead of the RBI policy this week due to the risk of a cut in GDP forecast. The current inflation dynamics are not favorable for a rate cut in the short-term, and the RBI is likely to turn more realistic on its growth projection for FY25.

The total market value of all stocks listed on the Bombay Stock Exchange increased to Rs 414.75 lakh crore, indicating a healthy and robust market.