Indian share markets began Tuesday’s session on a firm note and extended their rally for the second straight day, supported by optimism around the India-European Union trade deal and growing expectations of a pre-Budget rally. Broad-based buying across key sectors improved investor sentiment in early trade.

At around 9:25 am, the S&P BSE Sensex was up 593.83 points at 82,451.31, while the NSE Nifty50 gained 189.10 points to trade at 25,364.50. Energy, metal, PSU banking and financial stocks saw strong buying interest soon after the opening bell, helping benchmark indices move higher.

Market sentiment strengthened after the India-EU trade agreement, which investors view as a long-term positive for the Indian economy and corporate earnings. Experts noted that such major developments often trigger short covering following periods of heavy selling.

Expectations of a pre-Budget rally ahead of the Union Budget on February 1 further supported buying, as investors positioned themselves for potential growth-oriented measures. However, markets continue to witness a tug of war between foreign institutional investors and domestic institutional investors, with FIIs selling and DIIs stepping in to buy fundamentally strong stocks.

Overall, a mix of positive global cues, domestic policy optimism and sector-wide participation supported the market’s upward move in early trade, even as volatility remains elevated.