Sensex rises over 100 points, Nifty above 22,600 as market extends gains. Why caution is warranted

Indian equities extended their recovery for a second session, with Sensex and Nifty posting modest gains amid improved investor sentiment. Trent surged nearly 9% following a strong business update, while banks and NTPC advanced. However, analysts warned of continued FII selling, elevated bond yields, crude price uncertainty and potential RBI rate hikes, limiting upside.