After four straight sessions of decline, the Indian stock market made a strong comeback on Tuesday, driven by easing retail inflation, hopes of an interest rate cut, and positive global cues.
The Sensex surged over 490 points intraday, while the Nifty jumped nearly 163 points, crossing the 25,200 mark for the day. This rebound brought much-needed cheer to investors who had seen recent market volatility.
Inflation Drops to 6-Year Low, Fueling Rate Cut Hopes
The major boost came from June’s retail inflation data, which showed a drop to 2.1%, marking a six-year low. This figure is now well within the RBI’s comfort zone, increasing expectations that the central bank might consider a rate cut in its upcoming August policy meet.
Also Read: Asian Paints & Vishal Mega Mart Lead Mutual Fund Buys in June
Global Sentiment Also Positive
Adding to the momentum were overnight gains on Wall Street and a bullish trend in Asian markets, both of which supported domestic investor confidence.
Top Performers in the Rally
The market saw strong buying interest in sectors like IT, auto, and pharma. Among the top Nifty gainers were:
These stocks gained up to 4% intraday, riding the wave of improved sentiment.
What’s Next?
With inflation easing and global cues looking favorable, investors are now eagerly watching the RBI’s next move. A rate cut could further support equity markets, especially interest-rate-sensitive sectors like automobiles and banking.
Tuesday’s rally signals renewed confidence, but market participants are likely to stay cautious ahead of further economic data and earnings season updates.
