Mumbai (Maharashtra) [India]: Indian stock markets continued their upward trajectory on Tuesday, marking a seven-session rally as both Nifty 50 and BSE Sensex opened higher.
The Nifty 50 index opened at 23,751.50, gaining 93.15 points (0.39%), while the BSE Sensex surged 311.90 points (0.40%) to open at 78,296.28.
Market Recovery and Foreign Investments
Market experts attribute the rally to buying by foreign investors (FPIs), though upcoming trade tariff announcements by Donald Trump on April 2 remain a potential challenge.
Ajay Bagga, Banking and Market Expert, told media:
“Indian markets are benefitting from a sharp short covering by FPIs and some domestic investors who were caught off guard by the strong 4% jump in benchmark indices and over 7% surge in broader indices last week. The FPI net inflow in the cash markets is the first since December and September of 2024.”
He further noted that improving global sentiment has contributed to the market’s rally. However, April 2 could be a crucial day for global trade, as Trump’s “Reciprocal Tariffs” are expected. Reports from the Wall Street Journal suggest that the tariffs may be less broad-based and could include exceptions for certain sectors and countries, which has led to a global relief rally.
Sectoral and Stock Performance
All sectoral indices on the NSE opened in the green, reflecting broad-based market optimism:
- Nifty PSU Bank gained 0.62% after a 3% surge on Monday.
- Nifty Auto rose 0.51%.
- Nifty IT gained 0.87%.
Top Gainers and Losers in Nifty 50
🔼 Top Gainers: Ultratech Cement, HCL Tech, TCS, Infosys, Wipro.
🔽 Top Losers: Dr. Reddy’s, Britannia, IndusInd Bank, Apollo Hospitals.
Market Outlook and Technical Resistance
Akshay Chinchalkar, Head of Research at Axis Securities, cautioned that while the Nifty has been on a six-day winning streak, demand for protection via India VIX has also increased, signaling potential market volatility.
“Although market breadth has been positive, the rally has been sharp, with three upside gaps opening since the March 17 low. Bulls need to be cautious as some short-term indicators are overextended.”
📈 Key Levels to Watch:
- Resistance: 23,827 – 23,960 zone.
- Support: 23,402. Level
Asian Market Performance
Most Asian markets traded positively, except for Hong Kong’s Hang Seng and South Korea’s KOSPI, which showed declines.
- Nikkei 225 rose 0.7%.
- Taiwan Weighted Index gained 0.72%.