MUMBAI: Indian stock markets continued their upward momentum on Tuesday, with both benchmark indices opening with gains, buoyed by the return of Foreign Portfolio Investor (FPI) inflows and positive sentiment stemming from the meeting between Prime Minister Narendra Modi and US Vice President JD Vance.
The Nifty 50 index opened at 24,185.40, marking a gain of 59.85 points, or 0.25 per cent. The BSE Sensex also started strong, opening at 79,728.39 with a surge of 319.89 points, or 0.40 per cent.
Market experts viewed this high-level engagement as a significant development for economic and trade cooperation between the two nations. Analysts noted that Indian equities are showing resilience and outperforming despite weak global cues, attributing this to strong domestic fundamentals and renewed optimism over Indo-US ties.
Ajay Bagga, banking and market expert, said, “Indian markets saw yet another positive day with Bank Nifty index making a life time high. FPI flows in the equity cash segment remained positive, giving strength to the rally. Global sentiments remain an issue but India is being seen as a relatively better performer and is attracting FPI flows once again”.
He further added, “A meeting between the Indian Prime Minister and the visiting US Vice President was seen as a strategic engagement to further relations in the sphere of trade, defence, energy and advanced technologies. The positives from the meeting should help Indian market sentiment as well”.
Among sectoral indices, all opened in green except the Nifty IT index, which remained subdued. Nifty PSU Bank opened with a gain of 0.72 per cent, while the Nifty Metal index surged by 1.2 per cent, indicating strong investor interest in cyclical and infrastructure-related stocks.
On the corporate front, investors are eyeing the quarterly earnings results of several key companies scheduled for Tuesday. Firms including HCL Technologies, Havells India, Waaree Energies, AU Small Finance Bank, Tata Communications, Mahindra and Mahindra Financial Services, Choice International, Cyient DLM, Hathway Cable and Datacom, and Delta Corp are set to announce their financial performance for the fourth quarter.
Akshay Chinchalkar, Head of Research, Axis Securities said, “The Nifty ended higher for the fifth day yesterday, and has risen at least a percent up on four of those five days. This signal represents very strong bullish behaviour and was seen several times during the recovery from the covid crash lows in 2020. Near-term returns after such a signal were overwhelmingly positive back then”.
He added, “For now, the Nifty has ended above the 200-day moving average for the first time since the start of the year, and bulls will have to ensure a close above yesterday’s high to keep the rally going, with key support at 23872. Should that happen, the next upside target will be the 24000 – 24500 area”.
Meanwhile, Asian markets presented a mixed picture during early trade. Japan’s Nikkei index was almost flat in the red, with a slight decline of 0.07 per cent. Taiwan’s Weighted Index slipped over 1.4 per cent. In contrast, Singapore’s Straits Times Index surged more than 1.5 per cent, registering a strong rally. South Korea’s KOSPI traded nearly flat but in the green, while Hong Kong’s Hang Seng Index hovered flat in the red. (ANI)
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