India’s benchmark indices opened higher on Tuesday, with the Nifty 50 gaining 113.60 points to 23,199.55 and the Sensex adding 370.21 points to 76,700.22 by 9:16 AM.
However, shares of HCLTech tumbled 9 percent in early trade after its Q3 earnings report failed to meet expectations, prompting brokerage firm Nuvama to downgrade the stock from “buy” to “hold.”
Market experts indicated that broader market valuations remain stretched, with concerns about a potential sharp correction.
The Nifty 50 saw a 1.5 percent drop on Monday, marking its fourth consecutive day of losses and its sixth session in the red out of the last seven.
Rising US bond yields, a stronger dollar, and uncertainty around U.S. President-elect Donald Trump’s policies were cited as key factors behind the recent market turbulence.
Ajay Bagga, a banking and market expert, said: “After getting buffeted by a falling rupee, persistent FPI selling, weak economic data and challenging global cues, today looks like a technical bounce day from hugely oversold levels. Whether this level makes a bottom or we get another “sell on every rise” move remains to be seen. There is some global good news with reports that the Trump cabinet is proposing gradual tariffs post his inauguration on January 20th.
Akshay Chinchalkar, Head of Research at Axis Securities, pointed out that support lies in the 22,830-23,000 range, with resistance expected in the 23,450-23,500 zone.
Sectoral indices saw widespread gains, except for Nifty IT and Nifty FMCG. Nifty Realty surged 1.68 percent, Nifty Media rose 2 percent, and Nifty PSU Bank gained 2.37 percent.
Among the Nifty 50 stocks, NTPC, Hindalco, IndusInd Bank, and Adani Group companies led the gains, while HCLTech, Tech Mahindra, Infosys, and TCS were the biggest laggards.
The broader Asian markets exhibited mixed trends, with Japan’s Nikkei 225 and Singapore’s Strait Times declining, while Hong Kong’s Hang Seng Index, Taiwan’s Weighted Index, and South Korea’s KOSPI were in the green.
Key earnings announcements today include HDFC AMC, Network 18, Shoppers Stop, and Hathway Cable.
(With inputs from agencies)
