Stock Market Highlight: Sensex Rallies To Become First Asian Index To Wipe Out Losses Since 'Liberation Day'

The benchmark indices Sensex and Nifty 50 continued their upward trajectory to close higher for the second consecutive trading session on Tuesday.

US President Donald Trump's decision to halt reciprocal tariffs on non-retaliating countries for 90 days last week set off the positive rally.

Nifty 50 closed 2.19% higher at 23,328 as it gained 500 points. Meanwhile, the Sensex closed 2.10% higher at 76,734 on the heels of gaining 1,577 points.

During the day the benchmark indices surged even higher as Nifty 50 hit an intraday high of 2.36% and Sensex surged to hit an intraday high of 2.33%.

The escalating trade conflict between China and the United States is also highlighting India as a potential alternative manufacturing hub to China.

The effect can be seen in the surging domestic market as Nifty 50 reclaimed its 23,000 mark at the market open on Tuesday, a level lost after Trump's tariff imposition on April 2.

In comparison to the global market, the benchmark indices also became the first to recover all the losses that they faced post Trump's tariff imposition.

As Nifty 50 closed higher on Tuesday, HDFC Bank Ltd. added the highest number of points to Nifty 50. The nation's largest private lender added 101.23 points and ICICI Bank Ltd. added 60.41 points. Meanwhile, shares of ITC Ltd. and Hindustan Unilever Ltd. weighed on the Nifty 50.

In Nifty 50, all sectoral indices closed higher, with Nifty Realty surging the most to close 5.76% higher, followed by Nifty Defence, which closed 4.49% higher on Tuesday.

In the broader market, BSE Midcap and Smallcap outperformed the benchmark BSE Sensex, closing at 3.13% and 3.22%.

On BSE all sectoral indices closed higher, with BSE Realty gaining the most as it surged nearly 6% on Tuesday.

Market breadth on Tuesday was skewed in the favour of buyers as 3,276 stocks advanced and 811 stocks declined while 159 stocks remained unchanged.