Ahead of Market: 10 things that will decide stock market action on Wednesday

The Indian stock market continued to post sharp gains on Tuesday, with Sensex and Nifty rising nearly 2% each as easing oil prices, growing buzz around a prospective LTCG tax rejig, and other factors boosted investor sentiment.

Sensex jumped 1,225 points to close at 76,918 while Nifty 50 rose 370 points to end the session at 23,811 on Tuesday. The sharp gains added nearly Rs 4 lakh crore to the total market capitalisation of all companies listed on BSE, pulling it up to nearly Rs 487 lakh crore.

Here's how analysts read the market pulse

"Indian equities extended their recovery as a sharp decline in crude oil prices, declining U.S. Treasury yields and renewed FII interest eased recent macro pressures. Resilient Q2 earnings further strengthened confidence in the domestic growth outlook, while the return of foreign investors after prolonged selling provided a liquidity boost, driving broader participation led by financials and consumption-oriented sectors. Going forward, the durability of the recovery will hinge on broader earnings delivery, sustained FII inflows and continued moderation in oil prices and global yields, with geopolitical developments and the Fed’s policy trajectory remaining the key external triggers,” said Vinod Nair, Head of Research at Geojit Investments.