Indian stock market opened on a positive note on Tuesday, with banking and financial gainers as sentiment in the global market improved and U.S. and Iranian diplomats took a fresh step to revive talks on the Iran nuclear deal. Market sentiment also picked up as there was growing optimism on the talks in Qatar.
Key Highlights
- Sensex climbed nearly 200 points while Nifty approached 24,000 amid strong banking and financial sector buying.
- Positive global cues and easing geopolitical tensions lifted investor sentiment across broader Indian equity markets.
The BSE Sensex was trading 196.32 points higher at 76,924.69, after opening at 77,005.51. The Nifty 50 also remained in the green, rising 38.65 points to 23,984.90, after opening at 24,032.05.
Banking Stocks Lead Early Gains
Sensex gainers include Maruti Suzuki, which rose by nearly 1.9%, Adani Ports, InterGlobe Aviation (IndiGo), Power Grid Corporation, Trent and Sun Pharma. ICICI Bank and HDFC Bank also made small gains, and Reliance Industries, a banking giant, continued its upward climb.
However, Infosys, Hindustan Unilever, UltraTech Cement, NTPC, Axis Bank and Kotak Mahindra Bank saw mild selling pressure in the opening session.
Broader Markets Remain Positive
Investor sentiment in the broader market was also positive. The Nifty Next 50, Nifty 100 and Nifty 200 rose while the Nifty Smallcap 100 index was the better performer with robust gains. The Nifty Midcap 100 index was also in positive territory, reflecting the buying momentum on other market segments.
Also Read: Indian Bond Market Sees Rs 32,630 Crore Foreign Inflows Post Reforms
PSU Banks, Oil & Gas Stocks Rise
In the early trading, Nifty Oil & Gas, Nifty PSU Bank, and Nifty Realty were the top gainers while Nifty Bank, Nifty Consumer Goods and Nifty Power stocks were the largest losers. Nifty IT, Nifty FMCG and Nifty Metal, however, ended marginally lower, indicating some profit booking in technology and consumer stocks.
Global Cues Boost Market Sentiment
Investors' spirits lifted after reports that US and Iranian officials will meet in Qatar after recent military tensions. Market participants are closely watching the negotiations, with focus on regional stability and on developments in the Strait of Hormuz, the region's primary drivers in the crude oil markets and in markets generally.
Investors are closely watching developments in the world, but with lower crude oil prices and a softening in geopolitical concerns, Indian stocks are likely to stay supported, particularly in the banking, financial, aviation and oil-importing industries.
