Indian stock markets opened on a positive note on Tuesday, shrugging off recent GDP growth slowdown concerns. The Nifty 50 index opened at 24,367.50 points, marking a gain of 91.45 points, or 0.38%, while the BSE Sensex opened at 80,529.20 points, up by 281.12 points, or 0.35%.
Ajay Bagga, a banking and market expert, said that the government’s removal of the windfall tax on crude oil, ATF, petrol, and diesel exports is likely to boost oil and energy heavyweights. He added that market sentiment remains strong, with the possibility of a rally heading into the Union Budget in February.
Among the sectoral indices on the NSE, most saw gains except for Nifty FMCG. Nifty Bank, Nifty Auto, Nifty IT, Nifty Media, and Nifty Metal all rose, reflecting a broad-based market recovery. In the Nifty 50 list, 41 stocks opened in the green, with Shriram Finance, JSW Steel, ONGC, BEL, and HDFC Bank leading the gains.
Akshay Chinchalkar, Head of Research at Axis Securities, said that the Nifty’s positive movement for the second consecutive day could signal a potential “head-and-shoulders” bottom formation. He added that any rise above the 24,315 mark would confirm the bullish pattern, with targets near 24,800 and 25,500.
In the broader market, PSU banking stocks performed well. The Nifty Bank index rose by 0.65%, reflecting market expectations for a possible CRR (Cash Reserve Ratio) cut in the upcoming policy meeting. This would likely boost the profitability of banks.
The market trend remained optimistic, with the underlying resilience evident in its ability to recover despite concerns over economic growth. Foreign institutional investors (FIIs) sold equities worth Rs 238 crore on December 2, while domestic institutional investors (DIIs) bought equities worth Rs 3,588 crore on the same day, indicating strong domestic support.
Asian markets also saw positive momentum, with Japan’s Nikkei 225 gaining over 1.7%, Taiwan’s Weighted Index rising by 1.14%, and South Korea’s KOSPI increasing by 1.78%. The US market was also in the green, with the S&P 500 and Nasdaq Composite rising 0.24% and 0.97%, respectively.
