After a jittery start and three consecutive days of losses, Indian equity markets staged an impressive comeback on Tuesday, July 29. The BSE Sensex leaped 447 points to settle at a new high of 81,338, while the Nifty50 rallied by 140 points to close at 24,821—reclaiming the crucial 24,800 mark. This uptick came as a surprise for many market watchers, given the lackluster opening and continued pressure from foreign investors pulling money out of Indian stocks.
Broad-Based Buying Lifts Indices
The turnaround was fueled by broad-based buying in the second half of the session. Key sectors participated in the rally: the Nifty Bank index gained 137 points to finish at 56,222 and the Midcap Index jumped by an impressive 466 points to reach 57,985. Market sentiment was further buoyed by Torrent Pharma’s stock adding 4% following its in-line Q1 results—even as Indian Energy Exchange (IEX) slipped over 3% due to another negative brokerage note.
Tuesday’s surge was all the more notable considering the earlier headwinds. At one point in morning trade, the Sensex was down as much as 572 points at 80,891.02 and the Nifty50 had slipped by around 156 points to hit a low of 24,680.90. However, a wave of buying across sectors reversed those losses by afternoon.
Foreign Outflows Persist Despite Market Optimism
While domestic institutional investors stepped up with purchases totaling Rs 6,765 crore on Monday, overseas funds remained net sellers—offloading stocks worth Rs 6,082 crore. Continued foreign institutional investor (FII) outflows have been attributed to mixed Q1 earnings results and uncertainty surrounding stalled India-US trade negotiations.
Market experts remain cautious in their outlook. VK Vijayakumar of Geojit Investments flagged that “there are more headwinds than tailwinds for the market now.” Investors are also watching for signals from the US Federal Reserve’s policy meeting this week—a key driver for both global equities and oil prices.
Despite global jitters and persistent FII selling, Tuesday’s action showed that domestic optimism is alive and kicking in Dalal Street. If Sensex breaks above the resistance at 81,100 in coming sessions, analysts see potential for further upside toward 81,700.
