Stock markets opened on a cautious note on Tuesday, extending Monday’s positive momentum while investors closely watched global economic developments and domestic political signals.
Sensex opened higher at 80,415.47 from its previous close of 80,109.85 but has pared some gains, trading at 80,207.45 as of 9.45 am, up by 97.60 points or 0.12 per cent. Nifty opened at 24,343.30 compared to its previous close of 24,221.90 and is currently at 24,259.05, rising by 37.15 points or 0.15 per cent.
The markets are still riding the wave of the BJP-led NDA alliance’s landslide victory in the Maharashtra state elections, which has significantly boosted investor sentiment. “The benchmark index began the trading week on a positive note, opening 346 points higher as market participants celebrated the political development,” noted market analyst Ameya Ranadive.
Sectoral performance showed mixed trends, with PSU Bank index being a standout performer. Top gainers included defense equipment manufacturer BEL (up 2.29 per cent), IT major Infosys (up 1.82 per cent), state-owned BPCL (up 1.26 per cent), Tata Steel (up 1.10 per cent), and Tech Mahindra (up 1.05 per cent).
Conversely, some sectors experienced modest pullbacks. Ultratech Cement led the losers, dropping 0.99 per cent, followed by Tractor manufacturer Eicher Motors (-0.64 per cent), Bajaj Finserv (-0.42 per cent), Bajaj Auto (-0.39 per cent), and Adani Ports (-0.33 per cent).
Foreign Institutional Investors (FIIs) showed a significant shift in strategy, turning net buyers after 38 consecutive sessions of selling. “After remaining sellers for the last 38 sessions, FIIs turned net buyers on November 25, purchasing equities worth over Rs 9,900 crore,” highlighted Hardik Matalia from Choice Broking.
Global market dynamics and geopolitical tensions continue to influence trading patterns. Crude oil futures rose marginally, with Brent crude futures trading at $72.65, up 0.23 per cent, amid intensified conflicts in Ukraine. The dollar index remained strong, trading above 107, which could potentially impact emerging markets.
Market experts are cautiously optimistic but warn of potential challenges. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “The two-day rally is unlikely to sustain beyond a point since earnings concerns are major headwinds. The impact of short covering and the positive sentiment from election results will be temporary.”
Technical analysts provide nuanced perspectives on market movements. Akshay Chinchalkar from Axis Securities pointed out critical support and resistance levels: “The Nifty rose 1.3 per cent yesterday... 23,956 becomes critical support, and a daily close below which will re-embolden bears.”
Corporate developments are also capturing market attention. Hindustan Unilever Limited (HUL) announced the demerger of its ice cream business into an independent listed entity, which could potentially impact its stock performance.
Shrikant Chouhan from Kotak Securities advised traders to be cautious: “We believe the intraday market texture is bullish, but we may see limited activity in the near term due to temporary overbought conditions.”
As markets continue to navigate through complex global and domestic landscapes, investors are advised to remain vigilant and adopt strategic approaches to capitalize on emerging opportunities.