Indian stock market witnessed a rebound after a sharp plunge in the previous session as it opened higher and managed to sustain the gains amid a positive trend in Asian and US markets. All major sectors were trading in green, which further boosted the gains.
Investors will keep a watch on developments in the Middle East and oil prices.
At 2:40 PM, the BSE Sensex was trading 641.04 points or 0.98 per cent higher at 66,154.70. The NSE Nifty rose 197.40 points or 1.01 per cent to 19,709.75.
Kotak Mahindra Bank, Bharti Airtel, ICICI Bank, Tata Motors, and the State Bank of India were among the top gainers on the Sensex.
The Nifty Realty index jumped over 5 per cent and recorded a 10-year high on 10 October. All ten constituents are trading higher, making it the top sectoral gainer. The Nifty Realty index has surged 40 per cent year-to-date.
International Monetary Fund (IMF) has raised India’s economic growth forecast by 20 basis points to 6.3 per cent for the current financial year (FY24) on account of better consumption demand. However, there is no change in the projection for FY25, which has been pegged at 6.3 per cent.
“Growth in India is projected to remain strong, at 6.3 percent in both 2023 and 2024, with an upward revision of 0.2 percentage points for 2023, reflecting stronger-than-expected consumption during April-June," the IMF said in its annual publication, World Economic Outlook (WEO), released on Tuesday on the eve of the Fund-Bank (IMF and World Bank) meeting taking place in Marrakech, Morocco.
On Tuesday, crude oil prices eased after rallying over 4 per cent in the previous session. However, traders remained cautious as they looked for potential supply disruptions amid military clashes between Israel and the Palestinian Islamist group Hamas.
Sarvjeet Virk, Co-founder & MD of Finvasia said, "The Israel-Hamas conflict, though intense, is limited to a very specific area and is unlikely to trigger an immediate market reaction. During geopolitical turmoil, investors tend to make a safer choices and gravitate towards precious metals."
"At the same time, they do not abandon equities either, as they expect them to perform better once stability returns. Specifically, from an Indian market perspective, economic growth remains robust. Investors may view any market dip as an opportunity," he added.
Brent crude fell 36 cents to $87.79 per barrel, while US West Texas Intermediate (WTI) crude fell 35 cents to $86.03 per barrel. Both oil benchmarks declined by more than $1 in earlier trading before gaining a marginal recovery.