The Indian benchmark indices opened higher on Tuesday, supported by positive global cues, with buying seen in the auto and IT sectors in early trade. The Sensex was trading 188.66 points, or 0.23 percent higher, at 83,795.12, while the Nifty was up 54.80 points, or 0.21 percent, at 25,571.85.
Key Highlights
- Sensex opened around 188 points higher at 83,795; Nifty crossed 25,571 driven by auto and IT buying.
- Investor optimism fueled by positive Asian cues and U.S. trade discussions ahead of July 8 tariff deadline.
According to analysts, with the US market setting new record highs, the global equity market mood is upbeat, and West Asian geopolitics no longer pose a threat to the global economy.
"In the future, tariff developments are likely to have an impact on the market. The market will probably suffer if there is no trade agreement between the US and India, according to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
In early trading, Nifty Bank was up 51.95 points, or 0.09 percent, at 57,364.70. At 59,887.65, the Nifty Midcap 100 index was up 0.25 percent, or 146.45 points. At 19,127.60, the Nifty Smallcap 100 index had increased 52.50 points, or 0.28 percent.
Experts say that because the Nifty is still above the 5-day EMA, its closest moving average support, its short-term trend is still positive.
"The Nifty has partially filled the gap between 25,640 and 25,740 that was formed on October 3, 2024. Any move and close above 25,740 would negate this gap resistance, potentially extending the Nifty's upward rally to the 26,000 level. At HDFC Securities, Devarsh Vakil, Head of Prime Research, thinks the Nifty will find immediate support at 25400.
Hindustan Unilever Limited, Asian Paints, BEL, Bharti Airtel, HDFC Bank, PowerGrid, ITC, HCL Tech, and Tata Motors were the top gainers on the Sensex. Companies that suffered the most were Axis Bank, Trent, Tata Steel, Sun Pharma, Tech Mahindra, Maruti Suzuki, and Eternal.
The Indian economy's strong macros can help to increase fund flows into Indian equity. The dollar's sustained weakness (the dollar index is now at 96.81) suggests that FIIs are unlikely to sell heavily. Experts suggest that they may even continue to buy despite the high valuations.
Also Read: BSE Shares Deliver Nearly 200% Returns in a Year: Insights from Analysts
China, Bangkok, Seoul, and Jakarta were trading in green, while Japan was trading in red.
At 44,094.77 at the end of the previous trading session, the US Dow Jones was up 275.50 points, or 0.63 percent. The day ended with the S&P 500 up 31.87 points, or 0.52 percent, at 6,204.94, and the Nasdaq up 96.27 points, or 0.47 percent, at 20,369.73.
