Nifty, Sensex open in green; IT index leads gains, auto opens under pressure

MUMBAI: Indian stock markets opened higher on Tuesday, tracking positive global cues, with gains led by IT stocks. The benchmark Sensex opened 342.39 points higher, or 0.42 per cent up, to 81,129.69, while the Nifty 50 advanced 90.95 points, or 0.37 per cent up, to 24,864.10 in early trade.

Ajay Bagga, a banking and market expert, said, “Indian markets saw metals and auto leading while IT remained challenged in the wake of threats to outsourced contracts from US companies to Indian service providers. This morning Indian futures are positive, but with challenging valuations, and persistent FPI selling, Indian markets are finding it tough to break out from key resistance levels”.

He also pointed out the global political developments that have taken place recently. “Two PMs and various ministers lost their jobs over the last few days. The Japanese PM and the French PM have resigned. Indonesia’s long-serving Finance Minister is ousted. A senior British minister had to quit over a property tax payment dispute. Political chaos is not upending markets which have progressed despite two live wars in Europe and the Middle East claiming lives every day”, Bagga added.

In the broader market indices on NSE, positive momentum was seen. The Nifty Midcap 100 gained 0.28 per cent, while the Nifty Smallcap 100 surged 0.32 per cent. The Nifty 100 index also gained 0.3 per cent in the opening session, reflecting overall positive sentiments in the market.

Among the sectoral indices on NSE, all sectors except the auto index opened in positive territory. Nifty IT surged more than 1.8 per cent, boosted by Infosys announcing a buyback of company equity. Nifty Pharma was up by 0.3 per cent, Nifty Media gained 0.43 per cent, Nifty PSU Bank rose 0.17 per cent, while Nifty Oil and Gas was also up 0.14 per cent.

Shrikant Chouhan, head of equity research at Kotak Securities, said, “We are of the view that the short-term market outlook would remain volatile; however, a fresh uptrend rally is possible only after crossing the 24,900/81200 level. Above this, the market could move up to 25,000/81500. Further upside may also continue, potentially lifting the index up to 25,100/81800. On the downside, 24,650/80500 and 24,600/80300 are key support zones for day traders. If the index falls below 24,600/80300, then the index might fall to 24500/80000 or 24450/79800 levels in the short term”.

In the other Asian markets on Tuesday, most major indices were trading in the green during the opening session. Japan’s Nikkei 225 index gained 0.14 per cent, Hong Kong’s Hang Seng index surged more than 1.12 per cent, Taiwan Weighted index was up 0.9 per cent, while South Korea’s KOSPI gained more than 1 per cent.

The only exception was Singapore’s Straits Times index, which was down 0.29 per cent at the time of filing this report. (ANI)