Following boost from Asian markets, Indian benchmark equity indices opened Tuesday slightly higher for the third straight session. Financial and metal companies led the increase, while remarks from prominent US Federal Reserve officials increased the likelihood of a 25 basis-point rate drop later in the month.
The Nifty50 increased 53 points, or 0.22%, to trade at 24,400 by 9:21 am, while the BSE Sensex was up 450 points, or 0.25%, at 80,448.66.
The top gainers among the Sensex equities, increasing up to 3%, were Adani Ports, JSW Steel, SBI, HDFC Bank, IndusInd Bank, and Tata Steel. ITC, Bharti Airtel, Sun Pharma, Kotak Bank, and M&M, on the other hand, all had lower opening prices.
Despite data indicating an increase in industrial activity in the largest economy in the world, Indian IT businesses, who rely heavily on the U.S. for their revenue, opened slightly lower.
Expert Opinion
"The market's capacity to recover demonstrates its fundamental resiliency. The market is paying more attention to the anticipated policy response to this slowdown than it is to the reduction in GDP growth. The market is anticipating a CRR drop on Friday, which will increase bank profitability, according to the banking stocks' recovery yesterday," said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"The net FII sale figure from yesterday, which was only Rs 238 crores, is deceptive because it hides a lot of big bulk transactions. firms like ITC may be impacted by news of increased GST ideas on goods like tobacco, while insurance firms may benefit from tax breaks on premiums," added Vijayakumar .
"The Nifty 50's daily chart shows a bullish candle, indicating renewed buying interest at key support levels," stated Mandar Bhojane of Choice Broking. The previous strong reversal zones of 24,000 and 23,900 provide immediate support and, if supported by positive market action, might offer purchasing chances. The first obstacle on the upside is 24,350. Significant upside potential might be unlocked if the index makes a strong breakout above this level and moves toward the next resistance objectives at 24,800 and 25,000.
