Sensex Rebounds: Market Surge After Elections Boosts Investor Confidence

The Sensex broke a six-day losing streak, climbing 585 points as blue-chip stocks saw value buying, influenced by positive state election results. The broader market indicators, BSE midcap and smallcap, also showed gains. Market sentiment was affected by monetary policy outlooks and geopolitical factors.

The stock market rebounded on Tuesday, snapping a six-day losing streak as the benchmark Sensex surged nearly 585 points. This upturn was largely due to value buying in major blue-chip stocks, such as HDFC Bank, Reliance Industries, and Mahindra & Mahindra.

Leading the charge were stocks from the Sensex pack including Adani Ports & Special Economic Zone, Reliance Industries, and UltraTech Cement. In contrast, companies like Tata Steel and Bajaj Finance witnessed declines.

Investor sentiment has been buoyed by favorable state election outcomes and remains closely tied to forthcoming Reserve Bank of India (RBI) policy announcements. Analysts anticipate that the RBI may adopt a neutral stance despite the US Federal Reserve's recent rate cuts.

(With inputs from agencies.)