Indian equity benchmark indices showed an upward trend on Tuesday, supported by positive global cues and stable crude oil prices around $70 per barrel. The Sensex surged by 0.27%, gaining over 200 points to reach an intraday high of 78,504 early in the trading session. Meanwhile, the Nifty also saw an increase, trading approximately 0.23% higher at 24,488.
The IT, banking, and financial sectors led the market gains, with Nifty IT rising by 1.28% and Nifty PSU Bank recording a 0.45% increase. However, Nifty Metal experienced a decline of 0.86%, making it the worst-performing sector, followed by Nifty Media, which fell by 0.38%. Nifty Chemicals and Nifty FMCG also slipped by up to 0.30%.
Among the Nifty stocks, Trent witnessed the most significant drop, plummeting by 8.81%. This was followed by Bharat Electronics (BEL) and Larsen & Toubro (L&T), both declining by around 1% each. Additionally, InterGlobe Aviation (IndiGo) and Coal India saw decreases of 0.88% and 0.84%, respectively.
Market experts observed clear indications of an uptrend in the market, noting the resolution of two previous concerns: the increase in crude oil prices and sustained FPI selling. With crude prices returning to pre-war levels and FPIs transitioning from sellers to buyers, a positive shift has emerged. Although FPI buying has not yet become a dominant trend, the shift to buying from selling is significant and likely to continue, supported by robust fundamentals.
Analysts highlighted the Nifty’s breakout above its 200-day exponential moving average (EMA) for the first time since February, reinforcing the market’s bullish stance. They anticipate the 24,600 level to serve as immediate resistance, potentially opening the path towards 24,800 with sustained upward movement. Additionally, the 24,400-24,300 range is expected to offer near-term support.
On the international front, Brent crude prices rose by approximately 1% to $72.77 per barrel, while US West Texas Intermediate (WTI) crude increased by 1.12% to $69.32 per barrel.
