Indian Markets Rebound Despite Volatility, Banking Sector Leads Recovery

Indian stock markets showed resilience on Tuesday, closing positively despite volatile trading. Sensex and Nifty indices recorded slight gains, driven by the banking sector after RBI's liquidity measures. However, broader markets underperformed. Experts anticipate ongoing volatility due to the upcoming Union Budget and global economic factors.

On Tuesday, the Indian stock markets demonstrated resilience, overcoming volatility to close with gains. Following a challenging session on Monday, Sensex rose by 535.24 points or 0.71% to settle at 75,901.41, while Nifty advanced by 128.1 points or 0.56% to end at 22,957.25.

Despite unfavorable global cues, markets displayed early strength with advances in 1,116 shares, contrasted by declines in 2,429, and 84 stocks remaining unchanged. A late-session dip eroded some gains; however, the Nifty maintained its positive close. Realty, banking, and auto sectors outshone others due to the Reserve Bank of India's (RBI) liquidity enhancement measures, while pharma and energy sectors experienced sell-offs.

Speaking on the market's performance, experts like Ajit Mishra and V K Vijayakumar commented on the challenges posed by global tensions and domestic factors, including apprehension surrounding the Union Budget. Positive liquidity measures from the RBI hint at potential rate adjustments, possibly benefiting the banking sector further. Nevertheless, caution prevails with anticipated volatility around key economic events.

(With inputs from agencies.)