Indian benchmark equity indices opened in positive territory on Tuesday, supported by firm global market trends, selective gains in US equities and improving foreign institutional investor (FII) sentiment.
In early trade, the BSE Sensex rose 262.44 points, or 0.34 per cent, to 76,526.77, while the NSE Nifty 50 advanced 70 points, or 0.29 per cent, to 23,923.90.
Market participants attributed the gains to positive domestic sentiment and a turnaround in foreign fund flows.
Banking and market expert Ajay Bagga said Indian equities were benefiting from improving FII participation.
“Indian markets are showing a positive bias, with FII flows turning positive over the last two trading sessions. If this trend continues, a major overhang on the markets could be removed,” Bagga said.
Commenting on global developments, he noted that Asian markets remained cautious as investors assessed the implications of the proposed Iran-US agreement, the timeline for normalisation of tanker traffic in the Gulf and the outlook for crude oil prices.
Among Asian markets, GIFT Nifty traded marginally higher at 23,941.50, up 0.05 per cent, indicating a steady opening. Japan’s Nikkei 225 gained 0.98 per cent, while South Korea’s Kospi surged 2.40 per cent. Hong Kong’s Hang Seng, however, declined 1.14 per cent.
In the commodities market, Brent crude fell 0.31 per cent to USD 82.91 per barrel, while crude oil traded at USD 80.62 per barrel, down 0.17 per cent. Gold futures edged up 0.41 per cent to USD 4,327.19.
“US markets saw the Dow hit a record high, while the Nasdaq jumped more than 3 per cent on easing geopolitical concerns related to Iran and continued momentum in AI and Big Tech-led sectors. Volatility is likely to persist ahead of the formal signing of the US-Iran agreement on June 19 and beyond,” Bagga added.
At the time of filing, Dow Jones futures were up 56.37 points, or 0.11 per cent, at 51,727.40. The S&P 500 gained 122.83 points to 7,554.29, while the Nasdaq climbed 795.10 points, or 3.07 per cent, to 26,683.94.
On the technical front, analysts said the broader market structure remains supportive of a bullish trend.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the Nifty’s 50-day simple moving average (SMA) at 23,750 and 23,550, and the Sensex levels of 76,000 and 75,700, would serve as crucial support zones.
“As long as the market trades above these levels, the bullish trend is likely to continue,” Chouhan said.
He identified 24,000 and 24,100 on the Nifty, and 76,800 and 77,000 on the Sensex, as key resistance levels.
“However, if the market falls below 23,550 on the Nifty or 75,700 on the Sensex, sentiment could weaken and traders may prefer to exit long positions,” he added.
(With inputs from ANI)
