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The benchmark BSE Sensex gained 187.09 points or 0.24% to close at 79,595.59, while the broader Nifty 50 index closed at 24,167.25, higher by 41.70 points or 0.17%.
The market capitalization of all listed companies on the BSE increased by Rs 86,465 crore to Rs 427.37 lakh crore.
Sector Watch
The Nifty Bank and Nifty PSU Bank indices both rose by 0.6%, following the Reserve Bank of India’s decision to instruct lenders to set a lower buffer rate of 2.5% for digitally linked deposits, along with a one-year compliance deadline. The RBI also reduced the ‘run-off’ factor on wholesale deposits from non-financial entities—such as partnership firms and trusts—from 100% to 40%.Canara Bank and HDFC Bank both gained 1.7%, leading the financial sector higher.
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In contrast, IndusInd Bank plunged nearly 5% after appointing EY for a second forensic audit, this time to investigate a Rs 600 crore discrepancy in its microfinance portfolio, raising concerns about governance and accounting practices.
Popular in Markets
Among the Sensex constituents, ITC, Hindustan Unilever, Mahindra & Mahindra, HDFC Bank, Eternal, Kotak Mahindra Bank, State Bank of India, and ICICI Bank were the top performers, advancing between 0.5% and 2.6%.
IndusInd Bank, Power Grid, Bharti Airtel, Infosys, and Bajaj Finserv were among the notable laggards.
The broader mid-cap and small-cap indices both gained around 0.7%.
In stock-specific news, 360 One Wam surged 6.3% after announcing plans to acquire UBS’s India wealth business for $36 million.
Expert View
Despite negative global cues related to Trump-Fed tensions, the national market has maintained its optimism, with RBI's relaxed liquidity coverage ratio guidelines, which are anticipated to enhance credit growth, boosting the finance sector, said Vinod Nair, Head of Research at Geojit Investments."Foreign inflows have remained consistent for the fourth consecutive day, driven by a weakening dollar and competitive valuations. Additionally, domestic macroeconomic conditions are improving, with declining inflation and rising expectations of further rate cuts by the RBI, which are likely to lower costs and stimulate demand. These factors are expected to support corporate earnings in FY26," said Nair.
Global Markets
European stocks edged lower, while Asian markets remained subdued on Tuesday following U.S. President Donald Trump’s latest attack on Federal Reserve Chair Jerome Powell, which sparked a selloff in U.S. assets and exerted additional pressure on Treasuries. Gold, meanwhile, surged to a new all-time high.Tired of too many ads? Remove Ads
Trump escalated his criticism of Powell on Monday, calling him a “major loser” for not implementing interest rate cuts. The comments raised concerns over the president’s influence on the independence of the Federal Reserve.
On Wall Street, indexes dropped by about 2.4%, and the U.S. dollar fell to its lowest level in three years. U.S. Treasury yields rose as traders speculated that the government might seek to replace Powell with a figure more inclined to cut rates.
The MSCI World Equity index was little changed, down by less than 0.1% for the day.
The U.S. dollar index stood at around 98.369, stabilizing after hitting its lowest point since March 2022 on Monday. The euro was slightly lower at $1.1502.
U.S. Treasury yields, which have risen in recent weeks, showed signs of stabilizing in early trading, with the 10-year yield at 4.4125%.
The weakening dollar, coupled with heightened demand for safe-haven assets, propelled gold to a record high of $3,500.05, before easing slightly to $3,455.43—still up on the day.
Currency Watch
The Indian rupee ended lower on Tuesday, following the trend of regional currencies, which were pressured by a decline in the Chinese yuan. However, potential portfolio inflows into local equities helped the rupee limit further losses. The cuurency closed at 85.1875 against the U.S. dollar, slightly down from 85.1275 in the previous session.Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was up by 0.08% at 98.35.
Crude Impact
Oil prices climbed on Tuesday as investors seized the opportunity to cover short positions following the previous day's losses. However, concerns about economic headwinds from tariffs and U.S. monetary policy continue to weigh on expectations for fuel demand.Brent crude futures gained 90 cents, or 1.4%, reaching $67.16 a barrel by 0901 GMT.
