MUMBAI: The Indian stock markets continued their bullish trend on Tuesday, marking the third consecutive session of strong buying sentiment.
The Nifty 50 index opened at 24,343.30 points with a gain of 121.40 points or 0.5 per cent, while the BSE Sensex index also rose by 0.38 per cent, gaining 305 points to open at 80,415.47 points.
Experts noted that selling pressure still lingers in the market, as the Foreign Institutional Investors (FIIs) buying seen yesterday was attributed to MSCI rebalancing, which included a higher weightage for HDFC Bank. According to NSE data, FIIs purchased equities worth Rs 9,947 crore on Monday, while Domestic Institutional Investors (DIIs) sold equities worth Rs 6,907 crore.
MSCI rebalancing is a regular process of adding or removing stocks from an MSCI index to maintain its accuracy and effectiveness as a market benchmark.
“The two-day rally in the market is unlikely to sustain beyond a point since earnings concerns are major headwinds. The impact of short covering and the positive sentimental effect of the Maharashtra election results will be temporary” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
He further added “Too much should not be read into the FIIs turning big buyers yesterday since that was due to MSCI rebalancing with higher weightage to HDFC Bank. Leading banks will remain resilient due to consistent buying and reasonable valuations. In the coming days attention will be focused on what President Trump will do”.
Among the sectoral indices on the NSE, Nifty Financial Services led the gains with a surge of 0.71 per cent. Nifty Bank and Nifty Auto also recorded positive movement.
In the Nifty 50 list of shares, 37 stocks opened with gains, six declined, and seven remained unchanged at the time of filing this report. The top gainers in Nifty included Bharti Airtel, Infosys, ITC, BEL, and Hindustan Unilever. On the other hand, the top losers were ONGC, Adani Ports, NTPC, Ultratech Cement, and L&T.
“The nifty rose 1.3 per cent yesterday, recording its second straight gain of more than a percent, a streak that was seen last December. Yesterday’s gap-up means that 23,956 becomes critical support, a daily close below which will re-embolden bears. On the upside, 24,340 – 24,530 represents a pivotal hurdle area, followed by 24,700 – 24,800 where the 50-day and the 100-day averages are clustering” said Akshay Chinchalkar, Head of Research, Axis Securities.
Other major Asian markets faced selling pressure on Tuesday after the strong rally witnessed on Monday. Japan’s Nikkei 225 index declined by more than 1.3 per cent, Taiwan’s Weighted Index fell by 0.79 per cent, and South Korea’s KOSPI index dropped by 0.55 per cent. However, Hong Kong markets gained marginally, with a surge of 0.37 per cent at the time of filing this report. (ANI)