Sensex and Nifty recover from two-day downtrend in early trade on Tuesday, led by value-buying in blue-chip stocks Infosys and HDFC Bank, along with positive cues from Asian markets
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The equity benchmark indices, Sensex and Nifty, rebounded in early trade on Tuesday following two consecutive days of losses. The rebound was driven by value-buying at lower levels and a rally in major blue-chip stocks such as Infosys and HDFC Bank.
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According to PTI reports, the BSE benchmark Sensex surged 193.17 points, or 0.24%, to reach 81,701.63 during the early hours of trading. Similarly, the broader NSE Nifty rose 47.40 points, or 0.19%, to stand at 24,666.40.
From the 30-share Sensex pack, several stocks saw significant gains, including Bajaj Finserv, Tata Motors, Infosys, Bajaj Finance, HCL Technologies, Titan, and Kotak Mahindra Bank. These stocks helped the indices gain momentum in the early session.
However, some stocks in the Sensex index experienced losses. Among the laggards were Mahindra & Mahindra, Bharti Airtel, Tech Mahindra, UltraTech Cement, Reliance Industries, and Maruti.
The positive market sentiment was further buoyed by fresh foreign fund inflows and a strong rally in Asian markets. The markets in Seoul, Tokyo, Hong Kong, and Shanghai all recorded gains as investors reacted to news that China’s top leaders had indicated a more aggressive stimulus package for the next year to revive the country's economy. According to Deepak Jasani, Head of Retail Research at HDFC Securities, Asian equities advanced on the back of these signals from China.
In contrast, US markets closed lower in the overnight session on Monday, with global oil benchmark Brent crude falling by 0.29% to USD 71.93 per barrel.
Foreign Institutional Investors (FIIs) were net buyers of equities, purchasing shares worth Rs 724.27 crore on Monday. On the other hand, Domestic Institutional Investors (DIIs) sold shares amounting to Rs 1,648.07 crore, as per exchange data.
On Monday, the BSE Sensex had closed 200.66 points lower at 81,508.46, while the NSE Nifty fell by 58.80 points, settling at 24,619.
As per PTI, the ongoing rally in key Asian markets, coupled with foreign fund inflows, is expected to help the indices maintain their upward momentum as the trading day progresses.
(With inputs from PTI)
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