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Benchmark Indian equity indices, the BSE Sensex and Nifty 50, opened higher on Tuesday, supported by strong global cues.
Sensex Today
Benchmark equity indices, the BSE Sensex and NSE Nifty50, extended their gains for the third consecutive day on Tuesday, closing in the green. The 30-share Sensex rose 597.67 points, or 0.74%, to end at 80,845.75, after hitting an intraday high of 80,949.10.
Similarly, the NSE Nifty50 gained 181.10 points, or 0.75%, to finish at 24,457.15, trading between 24,481.35 and 24,280.00 throughout the day.
The session was dominated by the bulls, with 41 of the 50 Nifty50 stocks closing in the positive. Key gainers included Adani Ports, NTPC, Adani Enterprises, Axis Bank, and State Bank of India, which saw increases of up to 5.86%. On the downside, Bharti Airtel, ITC, Hero MotoCorp, HDFC Life, and Sun Pharma were among the nine stocks that closed lower, with losses of up to 1.50%.
The India VIX, which gauges market volatility, decreased by 2.22%, settling at 14.37 points.
In broader market performance, the Nifty Midcap100 and Nifty Smallcap100 indices advanced by 0.89% and 0.84%, respectively.
All sectoral indices finished in the green, except for Nifty FMCG and Pharma. The Nifty PSU Bank and Media indices surged over 2% each, followed by the Bank Nifty, OMCs, and metal indices, which gained around 1% each.
Views by: V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
The underlying resilience of the market is evident in its ability to bounce back. The market is focusing not on the GDP growth slowdown but on the likely policy response to this slowdown. Banking stocks bouncing back yesterday indicate that the market is expecting a CRR cut on Friday, which will boost the profitability of banks. The strength in heavyweights like Reliance and HDFC Bank can impart resilience to the market. The net FII sell figure at only Rs 238 crores yesterday is misleading since it conceals many large bulk deals. News of higher GST proposals on products like tobacco can impact stocks like ITC and tax reductions on insurance premiums can be beneficial to insurance stocks.
Global Cues
Asian markets followed the overnight gains on Wall Street and were also trading higher on Tuesday. Australia’s S&P/ASX 200 increased by 0.66%, Japan’s Nikkei 225 rose by 1.7%, and the Topix climbed 1.29%. South Korea’s Kospi was up 1.53%, while the Kosdaq advanced 1.75%.
On the other hand, Hong Kong’s Hang Seng Index dropped by 0.35%, the CSI 300 fell by 0.43%, and the Shanghai Composite was slightly up by 0.03%.
In global markets, stocks in the US and Europe showed mixed results on Monday, with the dollar strengthening against the euro amid political unrest in France and positive economic signals from the US.
French stocks ended mostly unchanged in volatile trading, as politicians planned a no-confidence motion against Prime Minister Michel Barnier, potentially leading to the collapse of the French government this week. While broader European stocks retreated on the news, they still finished the day with a gain of 0.66%.