Sensex, Nifty soar over 1.5% on global market rebound, RBI rate cut expectations

Indian stock markets ended sharply higher on Tuesday, supported by positive global trends and strong expectations of a rate cut by the Reserve Bank of India. Both benchmark indices — the Sensex and the Nifty — rallied more than 1.5%, with widespread gains across sectors signaling a strong revival in investor confidence.

The S&P BSE Sensex surged 1,089.18 points to close at 74,227.08, while the NSE Nifty50 climbed 374.25 points to settle at 22,535.85. The rally was led by heavyweight stocks such as Titan, Bajaj Finance, SBI, L&T, and Bajaj Finserv, which saw robust gains.

Experts attributed the rally to a combination of an oversold market setup and a strong rebound in global equities. Aditya Gaggar, Director at Progressive Shares, noted that the market opened with optimism on the back of global cues and expectations of a supportive monetary stance from the RBI.

Vinod Nair, Head of Research at Geojit Financial Services, said that optimism about India's domestic demand resilience and ongoing trade talks with the U.S. also helped boost sentiment. The RBI is scheduled to announce its monetary policy decision on Wednesday, and a 25-basis-point rate cut is widely anticipated.

Titan was the top performer among Sensex constituents, gaining 3.29%, followed by Bajaj Finance (3.21%), SBI (3.00%), L&T (2.94%), and Bajaj Finserv (2.75%). Meanwhile, Power Grid Corporation was the only stock in the red, dipping 0.14%.

All sectoral indices on the NSE closed in the green. Nifty Media led the rally with a 4.72% jump, followed by Consumer Durables (2.59%), Realty (2.47%), and PSU Bank (2.64%). Mid- and small-cap stocks also joined the party, with Nifty Smallcap 100 gaining 2.13%, slightly ahead of Nifty Midcap 100 at 2.11%.

Adding to the bullish tone, the India VIX, a key measure of market volatility, fell sharply by 10.31%, reversing the spiked anxiety that marked the previous trading session.