Mumbai: Indian stock markets opened higher on Tuesday, extending their winning momentum for the second consecutive trading day this week. Falling crude oil prices, strong corporate earnings and renewed foreign investor buying supported the rally.
The BSE Sensex surged more than 600 points, or 0.87 per cent, to touch an intraday high of 76,358.79 during early trading. Meanwhile, the NSE Nifty climbed approximately 170 points, or 0.72 per cent, to trade at 23,610.70.
Sectoral Performance
Financial services stocks led the gains, with the Nifty Financial Services ex-Bank index advancing around 1 per cent. Nifty Chemicals, FMCG and Media indices gained up to 0.77 per cent. Private banking, cement, information technology and consumer durables stocks also traded higher. However, healthcare and energy shares witnessed profit booking.
Market Rally
Analysts attributed the positive momentum to declining international crude oil prices and improving corporate earnings. Brent crude prices eased towards $104 per barrel, reducing concerns over India's energy import costs. Market experts also highlighted weakness in global artificial intelligence-related stocks as a possible factor supporting investor interest in Indian equities.
FII Buying
Foreign institutional investors continued purchasing Indian equities for the second consecutive session. FIIs bought shares worth ₹3,114 crore on Monday, while domestic institutional investors sold equities worth ₹392 crore. Analysts said renewed foreign buying and short covering in large-cap stocks could support further market gains.
Nifty Outlook
Technical indicators suggested strengthening bullish momentum. The Nifty reclaimed its 50-day exponential moving average near 23,170. Its Relative Strength Index improved to 61.03, while the put-call ratio stood at 1.28. Immediate support is placed between 23,200 and 23,300, while resistance remains at 23,600–23,700.
Global Cues
Investors will also monitor the US midterm election results and their potential impact on global markets and geopolitical developments. Analysts believe easing crude prices and continued institutional buying could influence market direction in upcoming sessions.
