Stock market today: BSE Sensex ends 6-day losing streak, ends above 81,600; Nifty50 reclaims 25,000

Stock market today: Indian equity benchmark indices, BSE Sensex and Nifty50, surged in trade on Tuesday to close in green. While the BSE Sensex went above 81,600, Nifty50 reclaimed the 25,000 level. BSE Sensex ended the day at 81,634.81, up 585 points or 0.72%. Nifty50 closed the day at 25,013.15, up 217 points or 0.88%. Both indexes had initially dipped about 0.1% earlier in the session.

After a six-session losing streak, Indian shares rebounded on Tuesday as investors seized the opportunity to buy the dip. BJP’s better-than-expected performance in a state assembly election also boosted market sentiment.

Market participants are now focusing on the Reserve Bank of India's policy decision, scheduled for Wednesday. While the central bank is widely anticipated to maintain rates, some expect a shift in stance to neutral.

The benchmarks had declined over the past six sessions due to the escalating Middle East conflict, which dampened risk appetite, and foreign institutional investors sold shares worth $6 billion.

Gaurav Dua, head of capital market strategy at Sharekhan by BNP Paribas, noted that investors used the dip as a buying opportunity.

According to Reuters, Dua also suggested that the lack of specific details from China regarding its stimulus measures could have redirected foreign inflows to India. The session's foreign and domestic flow data will be released after market hours.

Election results indicated that the ruling Bharatiya Janata Party is set for a surprise victory in the state of Haryana, while the opposition coalition appears poised to form the government in Jammu and Kashmir.

Sunny Agrawal, head of fundamental equity research at SBICaps Securities, said, "The state election results have eased fears that the ruling government in the centre may get weakened by a likely defeat in the two states, aiding the rally".

Twelve of the 13 major sectors advanced on Tuesday, with high-weightage financials rising 1%. The two heaviest stocks in the Nifty 50, HDFC Bank and Reliance Industries, gained about 2% each.

The more domestically-focused small- and mid-caps also rose about 2% each. Automaker Mahindra & Mahindra gained 3.5% after CLSA upgraded the stock to an "outperform" rating from "hold".