Indian shares extend rally as earnings, cooling crude draw foreign buyers
- Nifty 50 gained 1.58% to 23,810.85, and Sensex rose 1.62% to 76,917.85
Indian shares rose for a fourth straight session on Tuesday, buoyed by strong corporate earnings, easing oil prices and early signs of revival in foreign investor inflows.
The benchmark Nifty 50 gained 1.58% to 23,810.85, and Sensex rose 1.62% to 76,917.85. Both indexes have gained about 5% over four sessions and closed at two-month high levels.
The gains contrasted with subdued Asian markets, where technology stocks fell ahead of voting in the US midterm elections, as Indian equities were seen as a hedge against the global artificial intelligence trade.
Thirteen of the 16 major sectors advanced. Small-caps and mid-caps rose 0.3% and 1.1%, respectively.
Brent crude edged 1% higher to $106 a barrel after falling 7% in the previous session, as investors weighed talks between Iran and Qatari mediators and US attack on Iran’s Qeshm island.
Foreign portfolio investors were net buyers in four of the past five sessions, aided by expectations of a long-term capital gains tax cut and steady earnings.
“Overall, markets could perform better from current levels aided by attractive valuations and largely neutral to positive earnings,” said Avinash Agarwal, senior vice president and head of equity at Bandhan Life, adding crude, foreign inflows and US midterm elections will be key near-term triggers.
“Any favourable developments on taxation will support market sentiment, while the resurgence of AI trade also warrants attention, given its potential impact on equities.”
High-weightage financials and private banks gained 1.8% and 2%, leading benchmark advances. HDFC Bank and ICICI Bank, which together account for nearly 20% of the Nifty 50, rose 3.6% and 2.7%.
“Valuations of private lenders have become more compelling, even as earnings outlook is strengthening,” HSBC analysts led by Abhishek Murarka said, raising the fiscal 2027 Indian bank loan-growth forecast to 18% from 14%.
Among non-benchmark stocks, Marico climbed 10% after beating quarterly profit estimates.
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