The Indian benchmark indices opened higher on Tuesday amid positive global cues
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MUMBAI — The Indian benchmark indices opened higher on Tuesday amid positive global cues, as buying was seen in the auto and IT sectors in the early trade.
At around 9.26 am, Sensex was trading 188.66 points or 0.23 per cent up at 83,795.12 while the Nifty added 54.80 points or 0.21 per cent at 25,571.85
According to analysts, with the US market setting new record highs, the global equity market mood is positive and West Asian geopolitics is no longer a threat to global economy.
"Going forward, the market is likely to be influenced by developments on the tariff front. An India-US trade deal will be positive and if it does not happen, the market is likely to be impacted," said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Nifty Bank was up 51.95 points or 0.09 per cent at 57,364.70 in early trade. The Nifty Midcap 100 index was trading at 59,887.65 after adding 146.45 points or 0.25 per cent. Nifty Smallcap 100 index was at 19,127.60 after climbing 52.50 points or 0.28 per cent.
According to experts, Nifty's short-term trend remains positive, as it is still positioned above its nearest moving average support, the 5-day EMA.
"The Nifty has partially filled the gap range of 25,640-25,740 that was formed on October 3, 2024. Any move and close above 25,740 would negate this gap resistance and could potentially extend the Nifty's upward rally towards the 26,000 mark. Immediate support for the Nifty comes in at 25400," said Devarsh Vakil, Head of Prime Research at HDFC Securities.
Meanwhile, in the Sensex pack, Asian Paints, BEL, Bharti Airtel, HDFC Bank, PowerGrid, ITC, HCL Tech, Tata Motors and Hindustan Unilever Limited were the top gainers. Axis Bank, Trent, Tata Steel, Sun Pharma, Tech Mahindra, Maruti Suzuki and Eternal were the top losers.
Strong macros of the Indian economy can facilitate increasing fund flows into Indian equity. Sustained weakness in the dollar ( dollar index now at 96.81) means the possibility of heavy selling by FIIs is low. They might even continue to buy despite high valuations, said experts.
Foreign institutional investors (FIIs) were net sellers on June 30, selling equities worth Rs 831.50 crore. Meanwhile, domestic institutional investors (DIIs) remained buyers, purchasing equities worth Rs 3,497.44 crore.
In the Asian markets, China, Bangkok, Seoul and Jakarta were trading in green, whereas only Japan was trading in red.
In the last trading session, Dow Jones in the US closed at 44,094.77, up 275.50 points, or 0.63 per cent. The S&P 500 ended with a gain of 31.87 points, or 0.52 per cent at 6,204.94 and the Nasdaq closed at 20,369.73, up 96.27 points, or 0.47 per cent.