Sensex Surges 663 Points, Nifty Rises Amid Auto, IT, and Energy Sector Gains

Benchmark stock market indices ended their long streak as they opened higher on Tuesday, despite mixed global cues. The early market rally was led by stocks in the auto, IT, and energy sectors.

The S&P BSE Sensex gained 663.48 points, reaching 78,002.49, while the NSE Nifty50 rose by 203.85 points to 23,657.65 by 9:30 AM.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that although recoveries are possible, they are unlikely to last due to ongoing selling pressure from Foreign Institutional Investors (FIIs) and concerns over weak earnings growth in FY25. He added that, at best, the market may experience sideways movements at current levels, with sustained upward momentum only emerging if earnings recovery data shows positive trends.

Another notable trend is the continued weakness in many mid and small-cap stocks. Many of these stocks, which had outpaced their fundamentals and were driven by momentum, are now returning to more realistic levels. Dr. Vijayakumar advised that investors should avoid rushing to buy these stocks, as they may still have downside potential. In contrast, quality large-cap stocks remain resilient, and investors can continue to focus on them.