Sensex settles 200 pts higher, Nifty ends above 25,900: FII inflows among key factors behind market gain

Stock market today news: Sensex, Nifty rise in trade.

The equity benchmark indices Sensex and Nifty extended their rally for the third consecutive session on Tuesday, supported by firm trends in Asian markets and sustained foreign institutional investor (FII) inflows.

The Sensex settled 208.17 points or 0.25 percent higher at 84,273.92, while the broader Nifty rose to 25,935.15, up 67.85 points or 0.26 percent.

Tata Steel, ETERNAL and Tech Mahindra were the top gainers in the Nifty50 pack, rising up to 4 percent, while Adani Enterprises and Adani Ports and Special Economic Zone were among the major laggards, declining up to 2 percent. Market breadth was positive as bout 2406 shares advanced, 1146 shares declined and 151 shares unchanged.

Key factors behind market rise

1) FII buying: Market sentiment was bolstered primarily by continued foreign fund buying. The foreign institutional investors bought equities worth Rs 2,254.64 crore on Monday. FIIs were also net buyers to the tune of Rs 1,950.77 crore in the previous session on Friday.

2) Strong global cues: Asian markets were trading mostly higher, with Japan’s Nikkei 225, Hong Kong’s Hang Seng and South Korea’s Kospi advancing in early trade. US equities settled higher in overnight deals on Monday.

"Global equities markets rallied on Monday propelled by optimism over Japanese Prime Minister Sanae Takaichi's thumping election win and a tech rebound, while the dollar slumped amid reports that China has advised financial institutions to curb exposure to US bonds," Devarsh Vakil, Head of Prime Research, HDFC Securities, said.

He added that investors are now awaiting delayed January employment data, scheduled for release on Wednesday, and CPI inflation figures due on Friday. These data releases are expected to provide guidance on the Federal Reserve’s interest rate policy for the rest of 2026.

Stock Market LIVE Updates

3) Crude declines: Lower crude oil prices also aided market sentiment. Brent crude, the global oil benchmark, slipped 0.28 percent to USD 68.85 per barrel. A decline in oil prices helps ease inflationary pressures and supports the outlook for importing economies like India.

Technical outlook

Anand James, Chief Market Strategist at Geojit Investments, said Nifty largely held above the 25,830 level after a brief period of uncertainty.

"After a brief period of uncertainty, Nifty largely stayed around 25,830 or above, keeping our 26,020 objective in play. Weak momentum is a concern, which prompts us to wait and watch on approach to 26,020 before expanding the upside objective to 26,600-26,800," he noted.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.