The Indian benchmark indexes Sensex and Nifty50 opened higher on Tuesday, driven by IT, auto, and energy companies, as analysts predicted a rebound from the Nifty50's longest losing streak since February 2023.
The BSE Sensex was up 939 points, or 1.21%, at 78,278. The Nifty50 was up 293 points, or 1.25%, at 23,747 about 10:36 AM.
Concerns about foreign outflows and disappointing corporate profits weighed on India's benchmark BSE Sensex on Monday. The Nifty50, which indicated a downturn on November 13, extended its losing streak to the longest in more than 20 months.
The Nifty's Relative Strength Index (RSI) is below 30, indicating that it is oversold.
Top contributions to the Sensex include Infosys, Reliance Industries, M&M, HDFC Bank, TCS, and Tata Motors. In contrast, Bajaj Finserv, Kotak Bank, and ICICI Bank opened lower.
All sectoral indices opened higher. Nifty Realty increased by more than 2%, while Nifty Auto, IT, Consumer Durables, and Oil & Gas all rose more than 1%.
Ashoka Buildcon surged 6% in early trade after being announced as the lowest bidder for two projects at a bid price of Rs 2,791 crore.
Expert Opinion
According to experts, the current market pattern indicates that rapid recovery is unlikely. The enthusiasm that propelled the market to a record high of 26,216 in September has faded. There may be recoveries, but they are not likely to last, given the selling style of FIIs and fears about sluggish earnings growth in FY25. At most, the market may consolidate around its current levels, with sideways fluctuations. Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that sustained upward movements will only occur when incoming data suggests profits recovery.
Hardik Matalia, Derivatives Analyst at Choice Broking, stated, "After a bullish start, the Nifty can find support near 23,350, followed by 23,250 and 23,200. On the higher side, 23,550 may be an immediate resistance, followed by 23,650 and 23,800."
