Stock Market Performance Overview

The BSE Sensex climbed by 397.74 points (0.51%), closing at 78,362.73, while the NSE Nifty surged 165.05 points (0.7%) to reach 23,781.10. Market breadth was robust, with three stocks advancing for every stock that declined.

Key gainers included Adani Ports, Asian Paints, IndusInd Bank, and Reliance Industries, each rising 1.3–1.6%. Additionally, Tata Motors, ICICI Bank, Power Grid, Tata Steel, and UltraTech Cement all posted gains exceeding 1%.

Titan Company Shines Bright

Titan Company delivered an impressive performance, with shares jumping 3% to ₹3,574.65. The company reported a 26% YoY growth in jewellery sales (excluding bullion) for Q3, surpassing MOFSL’s estimate of 24%. Titan also expanded its footprint by adding 69 stores during the quarter. MOFSL maintained a 'Buy' rating on the stock, setting a target price of ₹3,850.

Similarly, Kalyan Jewellers witnessed a 5% surge in its stock price. The company announced a 39% YoY revenue growth for the December quarter and plans to open 24 new stores, signaling robust expansion.

Expert Insights on the Market Rebound

The sharp correction on Monday, driven by concerns over HMPV, was deemed an overreaction by market analysts. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the 1.6% drop in Nifty was largely influenced by short-selling activities aimed at exploiting negative sentiment. He highlighted the resilience of pharma and healthcare stocks as a testament to the market’s ability to withstand external shocks.

The government’s clarification that HMPV poses no significant threat further bolstered market confidence. Vijayakumar advised investors to capitalize on dips by buying fundamentally strong stocks in the automobile and financial sectors.

What Lies Ahead for Nifty?

According to Akshay Chinchalkar, Head of Research at Axis Securities, Nifty needs to hold the 23,500 level to sustain a recovery. He emphasized that resistance levels at 24,060 and immediate support at 23,500 will determine the market’s trajectory.

Monday’s selloff weakened the recovery from the December lows of 23,460. However, if Nifty breaks below 23,500, it may retest the November lows of 23,260.

Conclusion

The stock market's recovery on Tuesday signals resilience amidst uncertainty. With key sectors such as jewellery, automobiles, and financials showing promise, investors are advised to remain optimistic and focus on fundamentally strong stocks. As market sentiment stabilises, opportunities to capitalise on growth remain abundant.