Indian equity benchmarks kicked off Tuesday's trading session on a positive note, extending gains from the previous day. The markets opened higher, buoyed by favorable trends in global markets and selective buying across major sectoral indices.
Benchmarks Show Strength in Early Hours
The 30-share BSE Sensex opened strong and climbed 158.03 points or 0.21 percent to reach 72,157.51 during the initial trading period. Similarly, the broader NSE Nifty advanced 51.15 points or 0.22 percent to 23,314.70. This upward movement followed a firm closing in the previous session, where the Sensex had settled 131.18 points higher.
Market analysts pointed to a combination of domestic and international factors supporting the bullish sentiment. From the Sensex pack, several major companies saw their shares trade in the green. Notable gainers included Power Grid, Tata Steel, NTPC, Tata Motors, Mahindra & Mahindra, and Larsen & Toubro. However, the rally was not uniform, with some heavyweight stocks like HCL Technologies, Infosys, Tech Mahindra, and Axis Bank facing selling pressure and trading lower.
Sectoral Performance and Broader Market Trends
The market breadth revealed a positive tilt, indicating broader participation in the rally. Among the sectoral indices, the Nifty Metal and Nifty Auto indices emerged as top performers, showcasing significant gains. On the other hand, the Nifty IT index lagged, reflecting the weakness seen in technology stocks.
The broader market indices also mirrored the positive trend. The BSE Smallcap gauge rose by 0.63 percent, while the Midcap index advanced 0.36 percent, suggesting that investor confidence extended beyond the large-cap blue-chip companies.
Global Cues and Expert Outlook
The positive opening in Indian markets was partly influenced by a strong closing on Wall Street overnight. Additionally, most Asian markets were trading higher on Tuesday, providing a supportive external environment. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, offloading shares worth Rs 92.95 crore, as per exchange data. Meanwhile, domestic institutional investors provided support by buying shares worth Rs 1,097.07 crore.
Market experts suggest that the indices are currently in a consolidation phase after a sharp rally. They advise investors to focus on stock-specific opportunities, as the market direction may be influenced by upcoming domestic macroeconomic data and global developments. The overall trend remains cautiously optimistic, with key support and resistance levels being closely watched by traders.
In the previous session, the BSE benchmark had ended at 71,999.48, up by 0.18 percent. The Nifty closed at 23,263.55, marking a gain of 0.22 percent. The continued upward momentum suggests that bulls are attempting to maintain control, though volatility may persist due to profit-booking at higher levels.
