Mumbai: Indian equity benchmarks opened higher on Tuesday amid positive global cues and buying in private banking stocks.
The Nifty opened at 22,603.25, gaining 47.50 points or 0.21 per cent. Meanwhile, the Sensex opened at 72,508.05, up 125.58 points or 0.17 per cent.
Private Banks Lead Early Sectoral Gains
Private banks led sectoral gains in early trade, with the Nifty Private Bank index rising 0.75 per cent. The Nifty MidSmall IT & Telecom index gained 0.5 per cent, while the metal index advanced 0.32 per cent.
Chemical, energy, financial services and cement stocks were also trading higher, while PSU banks and FMCG remained largely flat.
On the losing side, Nifty Auto declined 0.4 per cent, followed by healthcare, pharma and consumer durables indices. Realty, IT and media indices were also marginally lower.
Analysts See Cautiously Constructive Market
Market experts said the near-term tone remained cautiously constructive, supported by a firm opening and improved global cues, although the broader market setup remained tentative following the recent decline.
Analysts said sustained recovery during the opening hours, backed by broader market participation, would be important to determine whether the current bounce could extend.
The market could remain in a “sell on rally” mode, as elevated US bond yields were likely to keep foreign institutional investors (FIIs) selling, even as domestic institutional investors (DIIs) continued to support large-cap stocks amid strong fund inflows, they said.
Experts added that a sustained market rally would require a sharp decline in crude oil prices, although there was currently no clear indication of such a move.
Nifty Faces Key Resistance Levels
On the technical front, analysts see 23,100-23,220 as near-term objectives, with 22,800 likely to act as an intermediate hurdle.
A failure to move above the 22,555-22,615 band could signal further consolidation, while the downside is expected to remain limited around 22,050 for now.
FIIs remained net sellers in Indian equities, offloading shares worth Rs 4,699 crore on Monday. DIIs provided support, making net purchases of Rs 5,181 crore.
Meanwhile, Asian shares traded higher in early hours after a technology-led rally propelled the Nasdaq to a fresh record high.