Benchmark indices Sensex and Nifty continued their winning run in early trade on Tuesday amid a sharp correction in crude oil prices and foreign fund inflows.
The 30-share BSE Sensex jumped 614.66 points to 76,301.63 in early trade. The 50-share NSE Nifty rallied 149.80 points to 23,588.55.
In the 30 Sensex firms, InterGlobe Aviation, UltraTech Cement, HDFC Bank, Asian Paints, Hindustan Unilever and Infosys were among the major winners.
Sun Pharma, Kotak Mahindra Bank, NTPC and Power Grid were trading lower.
Brent crude, the global oil benchmark, traded marginally up at USD 104.8 per barrel.
Foreign Institutional Investors (FIIs) bought equities worth Rs 3,114.68 crore on Monday, according to exchange data.
Rallying for the third day on Monday, the Sensex jumped 1,233.25 points, or 1.66 per cent, to settle at the day’s high of 75,692.78. The Nifty surged 387.70 points, or 1.68 per cent, to end at the day’s high of 23,440.80.
“Circumstances are ideal for the continuation of the ongoing market rally. Decline in Brent crude to USD 104, further weakening of the AI trade, continuing flow of good Q2 results and FIIs turning buyers have potential to accelerate the ongoing rally. The 11.6 per cent surge in a mega cap stock in one day is very rare. But this happened in RIL yesterday,” V K Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said.
In Asian markets, South Korea’s Kospi and Shanghai’s SSE Composite index traded lower, while Hong Kong’s Hang Seng index quoted higher.
“Investor sentiment has found support in a sharp correction in global crude oil prices, offering some relief on the macroeconomic front. Brent crude has retreated towards USD 105 a barrel as Qatar-mediated exchanges between the US and Iran have raised hopes of progress towards ending the conflict and restoring normal energy flows through the Strait of Hormuz,” Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said.
The US mid-term elections are the next major global trigger, with investors watching for implications for fiscal policy, trade and the Iran conflict, he added.
The US equity markets ended mostly lower on Monday. The Nasdaq Composite and S&P 500 ended in negative territory, while Dow Jones Industrial Average settled higher.
-PTI
