The stock market continued its recovery in early trade on Tuesday, with the Sensex and Nifty edging higher amid subdued trading ahead of the Christmas holiday.

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By mid-session, the benchmark BSE Sensex had climbed 326.18 points, or 0.42 percent, to trade at 78,866.35, while the broader Nifty 50 index advanced 107.80 points, or 0.45 percent, to 23,861.25. Gains in IT, consumer stocks, and select Tata Group companies helped maintain momentum despite thin trading volumes.

Tata Group drives market cheer

Tata Group stocks were the day’s highlight, led by Tata Investment Corp, which surged 10 percent. Tata Motors and Tata Chemicals also rallied by up to 5 percent following the group’s announcement of a Rs 15,000-crore IPO for its financial services arm, Tata Capital. Tata Motors emerged as the top gainer in the Nifty 50 index.

IT sector shines amid rupee depreciation

The IT sector outperformed the broader market, with a 0.4 percent uptick driven by the rupee’s decline, which boosts export revenues. Industry leaders TCS and Infosys posted gains of one percent and 0.5 percent, respectively.

Mixed trends across sectors

While sectors like Nifty Auto, Infra, IT, FMCG, and Energy registered gains, profit-booking in metal stocks kept the Nifty Metal index flat after Monday's rally.

Key movers

Bharat Electronics Ltd (BEL) rose one percent after securing orders worth Rs 973 crore. PG Electroplast also jumped 4.8 percent on news of its partnership with Whirlpool of India to manufacture semi-automatic washing machines.

FIIs remain net sellers

Despite the upbeat mood, foreign institutional investors (FIIs) offloaded Indian equities worth Rs 161 crore on Monday, extending their selling spree.

Outlook

Market sentiment remains cautious amid the holiday-shortened week, with traders eyeing global cues and sector-specific triggers for the next big move.