Indian equity markets opened positively on Tuesday, with the Sensex rising 255 points to 76,530 and the Nifty gaining 75 points to reach 23,931 in early deals. This upward movement was largely attributed to optimistic global market sentiment.
Top Performers and Market Movers
Among the Sensex constituents, HCL Tech, Hindustan Unilever (HUL), Tata Consumer Products, Bajaj Finance, SBI Life Insurance, Bajaj Finserv, and Nestle India were notable gainers, with their shares climbing up to 2.58%. Conversely, some stocks experienced a decline, including Hindalco, Tata Steel, PowerGrid, JSW Steel, and Axis Bank, which saw their shares drop by up to 3.48%.
Global Cues and Crude Oil Impact
A significant factor contributing to the positive market opening was a reported peace deal between the United States and Iran. This development led to a notable reduction in crude oil prices, which fell to $83 per barrel. Lower crude oil prices are generally favorable for import-dependent economies like India, as they can ease inflationary pressures and improve trade balances.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, commented on the situation, stating, "The sharp correction in Brent crude to below $84 and stability in the rupee have the potential to impart resilience to the market. The strong macro headwind of rising BoP deficit is no longer a serious issue plaguing the economy. This positive development, in turn, has imparted stability to the rupee which has appreciated to 94.71 to the dollar from the recent low of 96.96." Vijayakumar also suggested that the sustained foreign institutional investor (FII) selling, which has previously weighed on the market, is likely to taper off moving forward.
Market Outlook and Previous Session
Hitesh Tailor, Research Analyst at Choice Equity Broking, offered an optimistic view on the market's near-term structure. He noted, "The near-term market structure remains constructive, supported by positive global cues, improving institutional participation, and sustained strength in banking and large-cap stocks. While intermittent profit booking near higher levels may continue, the broader undertone remains favorable as long as key support zones are defended." He added that a decisive move above immediate resistance levels could reinforce bullish sentiment.
In the previous trading session, both major indices had also closed with significant gains. The Sensex climbed 736.38 points (0.97%) to settle at 76,264.33, after touching an intraday high of 76,821.07. The Nifty rose 231.00 points (0.98%) to close at 23,853.90, having peaked at 24,011.40 during the day.