Indian equity markets extended their gaining streak for the fourth straight session on Tuesday amid renewed optimism over hopes of Goods and Services Tax (GST) rationalisation and a recent upgrade in India’s credit rating. Market sentiment was further lifted by expectations of a likely pause on the 25% tariffs on India’s exports to the U.S. following some progress in U.S.-Russia talks.

The BSE Sensex ended at 81,644, up 371 points, or 0.5%, and the NSE Nifty settled 104 points higher at 24,981. Outperforming the benchmark indices, the broader market ended on a solid note, with both BSE Midcap and Smallcap indices adding 1% each.

In the past four sessions, the 30-share Sensex has risen 1,409 points, while the Nifty50 index tested the 25,000-mark for the second day, hitting a high of 25,013 in intraday today.

"The national market continued the renewed momentum, buoyed by expectations of GST rationalisation and a recent upgrade in India's credit rating. Additional optimism came from signs of easing geopolitical tensions between Russia and Ukraine, shifting the near-term outlook from consolidation to a more constructive stance,” said Vinod Nair, Head of Research, Geojit Investments.

However, the uptrend may face resistance until greater clarity emerges on US-India trade negotiations, he said. Notably, small- and mid-cap stocks outperformed, with auto stocks leading gains, driven by hopes that China may address supply concerns related to rare earth magnets."

On the BSE Sensex pack, 19 out of 30 stocks ended in positive terrain, with Tata Motors emerging as the top gainer, rising 3.5%. Adani Ports, Reliance Industries (RIL), Eternal, Tech Mahindra, and Kotak Mahindra Bank were among other notable gainers, climbing in the range of 3.16% to 1.56%.

On the other hand, Bajaj FinServ, Power Grid, M&M, HCL Tech, and BEL were among the top five losers, falling up to 1%.

Sectorally, Nifty auto, energy, oil & gas and telecom indices gained the most, while pharmaceutical and healthcare stocks witnessing mild profit booking.

This sustained rally reflects growing investor confidence, supported by strong performances across key sectors and broader market participation, said Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities.

Technically, the Nifty index continues to exhibit strength, trading comfortably above both its short-term and long-term moving averages, a sign of sustained bullish sentiment, he said. “The technical indicators suggest a continuation of the northward move, with dips likely to attract buying interest.”

“Given this setup, we believe the index is well-positioned to extend its upward journey in the near term. Key resistance levels to watch are 25150 and 25300, which could be tested if the current momentum persists. On the downside, the support zone is placed between the 24880-24850 level,” said analyst at SBI Securities.

The banking benchmark index, Bank Nifty, also ended on a positive note. Going ahead, the zone of 56000-56100 will act as an important hurdle, said Shah.

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