Indian equity markets opened in the green on Tuesday, with both the Sensex and Nifty recording gains in early trade. The Sensex climbed 117 points to reach 75,435, while the Nifty advanced 18 points to 23,667, supported by positive global sentiment.
IT Sector Leads the Charge
Technology stocks were prominent among the top gainers. Shares of major IT firms such as Infosys, HCL Tech, TCS, and Tech Mahindra saw rises of up to 5%. Other notable performers included Trent, Asian Paints, and IndiGo.
Global Cues and Market Breadth
The positive opening was partly influenced by global developments, including news that US President Donald Trump had postponed a planned attack on Iran, citing ongoing serious negotiations. This development contributed to a slip in Brent crude rates, which fell 2% to $109.89 per barrel.
Market breadth remained positive, with 2133 shares advancing against 964 declining on the BSE, while 189 shares remained unchanged. The India VIX, a measure of market volatility, also decreased by 4.29% to 18.78.
Analyst Insights and Sector Focus
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that recent FII (Foreign Institutional Investor) buying, though not yet a sustained trend, suggests Indian valuations are becoming more attractive. He highlighted increasing concerns about 'bubble valuations' in AI stocks globally, potentially redirecting capital towards emerging markets like India.
"If the FII buying becomes a trend, largecaps in financials, particularly in leading banks will be the segment to move up since their valuations are attractive and the segment has growth potential."
Vijayakumar also advised investors to focus on sectors resilient to potential headwinds like growth concerns, inflation, and currency depreciation. Pharmaceuticals, power-related stocks, and defence stocks were identified as segments likely to be least affected by a potential slowdown.
Conversely, UltraTech Cement, Eternal, Titan, Kotak Bank, ICICI Bank, and Sun Pharma were among the Sensex constituents that saw declines of up to 1% in early deals. A total of 36 stocks hit their 52-week highs, while 17 shares touched their 52-week lows on the BSE.
Previous Session's Close
In the previous session, the Nifty 50 closed marginally higher by 0.03% at 23,649.95, and the BSE Sensex gained 0.1% to 75,315.04, despite both indices falling as much as 1.4% during the day. The Indian rupee had also hit a record low, closing at 96.35 per dollar.