Mumbai: The Indian stock market opened higher on Tuesday, supported by strong global cues and renewed investor interest in auto and IT stocks. Both benchmark indices — Sensex and Nifty — saw gains in early trading.
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Nifty Surges Above 25,500, Sensex Edges Higher
As of 9:26 AM, the BSE Sensex was up 188.66 points or 0.23% at 83,795.12, while the NSE Nifty 50 rose 54.80 points or 0.21% to 25,571.85. Analysts attribute the rally to positive momentum in global markets, particularly the US, which is setting new record highs.
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“Global equity sentiment remains upbeat, and Middle East tensions are no longer a significant threat to economic stability,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Sectoral Gains: Auto and IT Lead the Rally
The rally was led by automobile, IT, and FMCG stocks. Among the top Sensex gainers were:
- Asian Paints
- BEL
- Bharti Airtel
- HDFC Bank
- HCL Tech
- Tata Motors
- Hindustan Unilever
Meanwhile, Axis Bank, Tata Steel, Sun Pharma, and Maruti Suzuki were among the top laggards.
Bank Nifty, Midcap & Smallcap Also in Green
- Nifty Bank was trading at 57,364.70, up 51.95 points or 0.09%.
- Nifty Midcap 100 rose by 146.45 points or 0.25% to reach 59,887.65.
- Nifty Smallcap 100 climbed 52.50 points or 0.28% to 19,127.60.
Technical Outlook: Nifty Could Hit 26,000
According to Devarsh Vakil, Head of Prime Research at HDFC Securities, the Nifty is holding above its 5-day exponential moving average (EMA).
“The index has partially filled the gap between 25,640–25,740 formed in October 2024. A close above 25,740 could extend the rally toward the 26,000 mark. Support lies at 25,400,” Vakil added.
Institutional Activity: DIIs Stay Bullish, FIIs Cautious
- FIIs (Foreign Institutional Investors) were net sellers, offloading equities worth ₹831.50 crore on June 30.
- DIIs (Domestic Institutional Investors) remained net buyers, purchasing ₹3,497.44 crore worth of shares.
Despite high valuations, experts believe strong macroeconomic fundamentals and a weak US dollar (Dollar Index at 96.81) may attract more foreign inflows into Indian equities.
Asian Markets Mostly Positive
Asian equities traded largely in the green:
- China, Bangkok, Seoul, and Jakarta saw gains.
- Japan was the only major market trading in red.
In the US, the Dow Jones closed at 44,094.77 (+0.63%), the S&P 500 ended at 6,204.94 (+0.52%), and the Nasdaq rose to 20,369.73 (+0.47%).