After three straight days of falls due to worries about lackluster results and foreign outflows, Indian benchmark equity indices opened higher on Tuesday, propelled by advances in banking and IT firms.
Around 9:22 am, the Nifty50 gained 47 points, or 0.19%, to trade at 24,188, while the BSE Sensex was up 110 points, or 0.14%, at 79,607 at that time.
Asian Paints, HDFC Bank, Maruti, M&M, and IndusInd Bank opened with losses, while Bharti Airtel, ICICI Bank, Tata Steel, Axis Bank, and HCL Tech opened with gains among the Sensex pack.
Following the company's announcement of a 123% increase in standalone net profit for Q2 to Rs 1,891 crore, Hindalco shares jumped 3% among Nifty50 stocks. This profit surpassed the Rs 1,294 crore street forecast.
However, Britannia shares fell 4% when the company's profit and revenue fell short of expectations. During early trade, the stock was the Nifty50's biggest laggard.
On the sectoral front, Nifty Realty gained 1.7%, driven by Lodha, Brigade, and Raymond. Nifty IT, Media, Pharma, PSU Bank, Healthcare, Consumer Durables, and Oil & Gas stocks all opened higher. In the broader markets, the Nifty Smallcap100 and Nifty Midcap100 both increased 0.6%.
Experts Opinion
"This consolidating market has been influenced by two major variables. One, FIIs' continuous selling has benefited the bears and dragged the market down. Two, consistent buying by DIIs has supported the market, preventing a market crash. The relative strength of these two factors will determine how the market moves in the days ahead," stated Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
It's crucial to remember that FII selling is decreasing in intensity (it was Rs 2026 crores yesterday), while mutual fund inflows are gradually rising, allowing DIIs to keep purchasing. Equity mutual fund monthly flows reached a record high of Rs 41887 crores in October, representing a 22% month-over-month rise. Vijayakumar continued, "This can give the market resilience, and fundamentally sound fairly valued stocks, such as the top banking names, will outperform."
"With no obvious directional breakout, the Nifty index has been trading in a narrow range of 24,000 to 24,350," stated Mandar Bhojane, Research Analyst at Choice Broking. A bullish crossover is indicated by the RSI momentum indicator, suggesting possible upward movement. Furthermore, the daily chart's inverted hammer pattern points to a potential positive reversal. The Nifty might advance to the 24,500–24,550 range if momentum increases, although 24,000 is still a good support level.
International Markets
While the dollar maintained at four-month highs on Tuesday, Asian equities fell, but the focus of all the excitement was on bitcoin, which surged to a record high supported by investor wagers on assets that are expected to gain from Donald Trump's presidential victory.
South Korean equities down 1%, Taiwan shares fell 2%, and MSCI's broadest index of Asia-Pacific stocks outside of Japan fell 1%.
With Tesla rising over 9% after reaching $1 trillion in market value on Friday due to speculation that the automaker would profit from CEO Elon Musk's support of Trump, Wall Street's major indexes recorded record high closing overnight.
