Indian equity benchmarks extended their winning streak to a fourth consecutive session on Tuesday, with the Sensex surging 1,225.07 points, or 1.62 per cent, to close at 76,917.85 and the Nifty 50 advancing 370.05 points, or 1.58 per cent, to settle at 23,810.85. Both indices ended at their intraday highs, and the Nifty crossed the 23,800 mark for the first time since August.

The rally capped a strong four-session run in which the Sensex gained 3,671.82 points, or about 5 per cent, and the Nifty climbed 1,112 points, or 4.89 per cent — the Nifty's biggest four-day advance in seven months. The broader market joined in: the Nifty Bank rose 538 points to 55,540, while the NSE Midcap index gained 612.85 points to 58,596.25.

What drove the rally

Market watchers pointed to a combination of falling crude oil prices, strong corporate earnings and renewed buying by foreign investors. Global crude prices were trading around $105 a barrel, easing from recent highs, while exchange data showed foreign institutional investors bought shares worth a net Rs 3,114.68 crore on Monday, even as domestic institutional investors sold a net Rs 392.20 crore.

Buying was broad-based but led by fast-moving consumer goods and capital-market stocks. Among Nifty constituents, BSE Ltd surged 5.03 per cent and Nestle India gained around 4 per cent, while Power Grid fell about 3 per cent. Reports also linked sentiment to hopes of capital-gains tax relief for foreign investors.

A sharp turnaround from Monday

Tuesday's gains followed another strong session on Monday, when the Sensex jumped 1,233.25 points to 75,692.78 and the Nifty rose 387.70 points to 23,440.80. Investors had also been tracking geopolitical developments after reports that the United States struck targets on Iran's Qeshm Island on Monday evening, though easing crude prices helped calm those nerves.

The day's rally added roughly Rs 5 lakh crore to the market capitalisation of NSE-listed companies, according to market wrap data. Analysts cautioned, however, that the next test for the rally will be whether foreign inflows sustain and whether crude prices stay contained, with technical analysts flagging 23,650–23,680 as an important support zone for the Nifty.

For now, the mood on Dalal Street is firmly upbeat: four straight sessions of gains, two-month highs, and a Nifty back above a level it had not seen since August.