MUMBAI: The stock market maintained its positive momentum on Tuesday, with the BSE Sensex crossing the 69,000 mark, registering a rise of 137 points in early trade, after a stellar start on the previous day.
The Nifty 50 experienced a robust 400-point rally, driven by the Bharatiya Janata Party’s resounding victory in recent state assembly polls.
This surge propelled the benchmark to comfortably overcome significant obstacles, resulting in the formation of a long bull candle on the daily charts.
At the opening on Tuesday, the Sensex gained 133.59 points, reaching 68,995.02, while the Nifty opened 41.00 points higher at 20,727.80.
Among Nifty companies, 27 witnessed advances, while 23 faced declines. Top gainers included BPCL, Axis Bank, Adani Enterprises, Adani Ports, and Dr Reddy, while HCL, Infosys, Bajaj Auto, Bajaj Finserv, and NTPC were among the top losers.
Despite this positive trend, the GIFT Nifty on the NSE IX experienced a decline of 43.5 points, closing at 20,817, signalling a potential negative start for Dalal Street.
Varun Aggarwal, founder and managing director, Profit Idea, said, “Oil prices remained stable on Tuesday amidst uncertainty surrounding OPEC+ voluntary output cuts and ongoing tensions in the Middle East, causing concerns about supply. Brent crude futures saw a modest increase of 13 cents, reaching USD 78.16 per barrel, while U.S. West Texas Intermediate crude futures rose by 18 cents to USD 73.22 per barrel”.
Oil prices remained stable amid uncertainty surrounding OPEC+ voluntary output cuts and ongoing tensions in the Middle East. Brent crude futures saw a modest increase of 13 cents, reaching USD 78.16 per barrel, while US West Texas Intermediate crude futures rose by 18 cents to USD 73.22 per barrel.
In the currency market, the rupee initially gained ground but later retreated by 5 paise, settling at 83.38 against the US dollar on Monday.
Aggarwal said, “The rupee initially gained ground but later retreated by 5 paise to settle at 83.38 against the US dollar on Monday. This reversal was attributed to the recovery of the greenback in global markets and increased dollar buying by financial institutions”.
This reversal was attributed to the recovery of the greenback in global markets and increased dollar buying by financial institutions.
Aggarwal said, “Foreign portfolio investors acquired stocks worth Rs 2,073.2 crore, while domestic institutional investors remained net buyers in the last two sessions, purchasing stocks totalling Rs 4,797.1 crore, as per NSE data”.
Aggarwal stated, “Gold prices reached new highs in Monday’s Asian trading, driven by expectations of a potential Federal Reserve rate cut by March 2024. The rally was fueled by factors such as easing inflation, weaker labour market data, and a more moderate stance from the Fed”.
He added, “Additionally, geopolitical tensions, exemplified by an attack in the Red Sea, enhanced gold’s appeal. Despite Fed Chair Jerome Powell’s commitment to maintaining higher US rates, recent comments on inflation control and economic stability have shifted market expectations towards a rate pause in December and potential cuts in early 2024”.
Foreign portfolio investors acquired stocks worth Rs 2,073.2 crore, while domestic institutional investors remained net buyers in the last two sessions, purchasing stocks totalling Rs 4,797.1 crore, according to NSE data.
Gold prices reached new highs in Monday’s Asian trading, driven by expectations of a potential Federal Reserve rate cut by March 2024.
The rally was fueled by factors such as easing inflation, weaker labour market data, and a more moderate stance from the Fed.
Geopolitical tensions, exemplified by an attack on the Red Sea, further enhanced gold’s appeal. Despite Fed Chair Jerome Powell’s commitment to maintaining higher US rates, recent comments on inflation control and economic stability have shifted market expectations towards a rate pause in December and potential cuts in early 2024. (ANI)