Indian equity benchmark indices traded higher on Tuesday amid positive global cues and crude oil prices hovering around the $70-a-barrel mark
MUMBAI — Indian equity benchmark indices traded higher on Tuesday amid positive global cues and crude oil prices hovering around the $70-a-barrel mark.
Sensex jumped as much as 0.27 per cent or over 200 points to hit an intraday high of 78,504 in early trade, while Nifty was trading around 60 points or 0.23 per cent higher at 24,488.
Sectorally, IT, banking and financial stocks led the gains. Nifty IT rose 1.28 per cent, followed by Nifty PSU Bank which gained 0.45 per cent.
In contrast, Nifty Metal was the worst performer, falling 0.86 per cent, followed by Nifty Media, which declined 0.38 per cent. Nifty Chemicals and Nifty FMCG slipped up to 0.30 per cent.
Among the Nifty stocks, Trent was the biggest loser, plunging 8.81 per cent, followed by Bharat Electronics (BEL) and Larsen & Toubro (L&T), which declined about 1 per cent each. Meanwhile, InterGlobe Aviation (IndiGo) fell 0.88 per cent, while Coal India slipped 0.84 per cent.
According to market experts, there are distinct signs of an uptrend in the market.
They noted that two factors weighing on Indian markets -- the crude price hike and sustained FPI selling -- are now behind us and have reversed. Crude prices are back to their pre-war levels, while FPIs have turned buyers. Although FPI buying is not yet a strong trend, the fact that foreign investors have stopped selling and turned buyers marks a significant shift that is likely to be sustained, supported by strong fundamentals.
Technically, the Nifty's breakout above its 200-day exponential moving average (EMA) for the first time since February has strengthened the market's bullish structure, according to analysts.
They expect the 24,600 level to act as the immediate resistance, with a sustained move above it potentially paving the way towards 24,800, while the 24,400-24,300 zone is likely to provide near-term support.
International benchmark Brent crude rose about 1 per cent to $72.77 a barrel. Similarly, US West Texas Intermediate (WTI) crude gained 1.12 per cent to $69.32 a barrel.