The Indian benchmark indices opened higher on Tuesday amid positive global cues, with buying seen in the auto and IT sectors in early trade.
At around 9:26 a.m., the Sensex was trading 188.66 points, or 0.23 per cent, higher at 83,795.12, while the Nifty rose 54.80 points, or 0.21 per cent, to 25,571.85.
According to analysts, with US markets hitting new record highs, the mood in global equities remains upbeat, and West Asian geopolitical tensions are no longer perceived as a threat to the global economy.
“Going forward, the market is likely to be influenced by developments on the tariff front. An India-US trade deal will be positive, but if it does not materialise, the market is likely to be impacted,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The Nifty Bank index was up 51.95 points, or 0.09 per cent, at 57,364.70 in early trade. The Nifty Midcap 100 index was trading at 59,887.65 after adding 146.45 points, or 0.25 per cent. The Nifty Smallcap 100 index rose 52.50 points, or 0.28 per cent, to 19,127.60.
Experts noted that the Nifty’s short-term trend remains positive, as it continues to hold above its nearest moving average support, the 5-day EMA.
“The Nifty has partially filled the gap in the 25,640–25,740 range that was formed on October 3, 2024. Any move and close above 25,740 would negate this gap resistance and could potentially extend the Nifty’s upward rally towards the 26,000 mark. Immediate support for the Nifty comes in at 25,400,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.
In the Sensex pack, Asian Paints, BEL, Bharti Airtel, HDFC Bank, PowerGrid, ITC, HCL Tech, Tata Motors, and Hindustan Unilever Limited were among the top gainers. Axis Bank, Trent, Tata Steel, Sun Pharma, Tech Mahindra, Maruti Suzuki, and Eternal were the top laggards.
Experts said that the strong fundamentals of the Indian economy could attract increased fund flows into Indian equities. Sustained weakness in the dollar (with the dollar index now at 96.81) means the likelihood of heavy selling by foreign institutional investors (FIIs) is low; they may even continue to buy despite high valuations.
FIIs were net sellers on June 30, offloading equities worth Rs 831.50 crore, while domestic institutional investors (DIIs) remained net buyers, purchasing equities worth Rs 3,497.44 crore.
In Asian markets, China, Bangkok, Seoul, and Jakarta were trading in the green, while Japan was the only market trading in the red.
In the previous trading session, the Dow Jones in the US closed at 44,094.77, up 275.50 points, or 0.63 per cent. The S&P 500 ended with a gain of 31.87 points, or 0.52 per cent, at 6,204.94, while the Nasdaq closed at 20,369.73, up 96.27 points, or 0.47 per cent.
—IANS
