Breaking a six-day losing streak, stocks rose once more, supported by the BJP's performance in the Haryana assembly elections.

New Delhi [India], October 8: Indian stock indices ended in the green on Tuesday, breaking a six-day losing streak, mainly due to buying at lower levels and the BJP's prospects for a third consecutive term in Haryana.

The Sensex closed at 81,634.81 points, gaining 584.81 points or 0.72 percent, while the Nifty finished at 25,013.15 points, up 217.40 points or 0.88 percent. All sectoral indices rose, except for Nifty metal, with Nifty media, auto, pharma, oil, and gas being the top performers.

Ajit Mishra, SVP of Research at Religare Broking Ltd., stated, "Traders should consider using this recovery to reduce positions and be selective with long trades. We continue to favor IT and pharma stocks for their resilience and recommend careful stock selection in other sectors."

Prior to this recovery, both the Sensex and Nifty had experienced six consecutive days of losses, which analysts attributed to a consolidation phase following the recent bull run. The decline was also linked to heightened tensions in the Middle East after the recent attack on Israel by Iran.

Over the past week, the Sensex and Nifty have fallen by 4-5 percent each.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, advised, "The best strategy now is to accumulate high-quality, fairly valued blue-chip stocks, particularly in the financial and IT sectors."

Before the recent downturn, the US Federal Reserve's monetary policy committee had supported Indian stocks by loosening interest rates by a substantial 50 basis points. A steeper rate cut in the US often leads to a flight of capital to alternative investment destinations like India.

Foreign portfolio investors (FPIs) continued to buy, which provided some support to the stock indices. FPIs have remained positive in the Indian stock market for four consecutive months through September.

Investors in India will now look to the RBI's monetary policy outcome scheduled for Wednesday, as the RBI has maintained the repo rate at 6.5 percent for nine consecutive meetings.

Additionally, investors will keep an eye on Q2 earnings for Indian companies.

Vikram Kasat, Head of Advisory at PL Capital - Prabhudas Lilladher, noted, "Looking ahead, the festive season is expected to boost consumer spending, which could positively impact various sectors, especially retail and gold. However, geopolitical developments and economic indicators will play a critical role in shaping market dynamics."