Indian benchmark indices opened higher on Tuesday, supported by positive global cues and early buying in auto and IT stocks. At around 9:26 AM, the Sensex was trading at 83,795.12, up 188.66 points or 0.23%, while the Nifty gained 54.80 points or 0.21% to reach 25,571.85.
According to analysts, upbeat sentiment in global equities, driven by record highs in U.S. markets, has buoyed investor confidence. Additionally, geopolitical concerns in West Asia are no longer seen as a major threat to the global economy.
“Going forward, the market is likely to be influenced by developments on the tariff front. An India–U.S. trade deal would be a positive trigger; if it doesn’t materialize, markets could face some pressure,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
In sectoral indices, Nifty Bank was up 51.95 points or 0.09% at 57,364.70. The Nifty Midcap 100 rose 146.45 points or 0.25% to 59,887.65, while the Nifty Smallcap 100 climbed 52.50 points or 0.28% to 19,127.60.
Experts say the short-term trend for the Nifty remains positive, as it continues to trade above the key support of its 5-day exponential moving average (EMA).
“The Nifty has partially filled the gap between 25,640 and 25,740 that formed on October 3, 2024. A close above 25,740 would invalidate this gap resistance and could pave the way for a rally toward the 26,000 mark. Immediate support is seen at 25,400,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.
Among top Sensex gainers were Asian Paints, BEL, Bharti Airtel, HDFC Bank, PowerGrid, ITC, HCL Tech, Tata Motors, and Hindustan Unilever. On the other hand, Axis Bank, Trent, Tata Steel, Sun Pharma, Tech Mahindra, Maruti Suzuki, and Eternal were among the top losers.
Analysts added that India’s strong macroeconomic fundamentals are likely to attract continued fund flows into equities. With the U.S. dollar index now at 96.81, the likelihood of aggressive foreign selling remains low. Some believe foreign institutional investors (FIIs) may continue buying, despite rich valuations.
On June 30, FIIs were net sellers, offloading equities worth ₹831.50 crore, while domestic institutional investors (DIIs) were net buyers, purchasing ₹3,497.44 crore worth of equities.
In Asia, markets in China, Bangkok, Seoul, and Jakarta traded in the green, while Japan was the only major market in the red.
In the previous U.S. trading session, the Dow Jones closed at 44,094.77, up 275.50 points or 0.63%. The S&P 500 gained 31.87 points or 0.52% to close at 6,204.94, while the Nasdaq rose 96.27 points or 0.47% to settle at 20,369.73.-IANS
