Indian Equity Market Opens in Green Amid Global Optimism and Sectoral Focus
The Indian stock market began Tuesday on a positive note, with benchmark indices BSE Sensex and Nifty50 showing signs of resilience after last week’s sharp five-day decline. At the opening bell, the BSE Sensex surged past the 78,500 mark, trading at 78,540.17, up 47 points or 0.059%, while the Nifty50 stood at 23,767.20, gaining 14 points or 0.058%.
Monday’s session had already seen a modest recovery, which analysts attributed to typical market behavior following oversold positions in key index stocks. Ajit Mishra, SVP of Research at Religare Broking, emphasized the importance of adopting a cautious approach, saying, “Participants are advised to maintain a cautious stance with a negative bias on the index until clear signs of a rebound emerge. However, individual stocks continue to present opportunities on both sides. We reiterate our preference for the pharma and healthcare sectors for long positions, while other sectors are likely to see mixed trading trends.”
Key Market Levels
Market experts have highlighted resistance levels at 23,850-23,870, with a bearish gap noted between 24,000 and 24,150. On the downside, support is observed at 23,600-23,500, with a potential further drop to 23,350 if these levels are breached.
Global Influences and Sectoral Focus
Global markets also provided a sense of optimism, with major US indices closing higher on Monday. Both the Dow Jones Industrial Average and Nasdaq Composite extended their winning streak to three sessions, bolstered by strong performances from top-tier technology companies, referred to as the “Magnificent Seven.” These gains came amid reduced trading volumes due to the holiday season.
Asian markets mirrored this subdued activity, trading within narrow ranges as the region followed the upward momentum set by Wall Street.
Other Market Indicators
Gold prices remained steady as the holiday season approached, while the dollar strengthened on expectations of prolonged high-interest rates in the US. In domestic trading, Foreign Portfolio Investors (FPIs) recorded net sales of ₹168 crore, whereas Domestic Institutional Investors (DIIs) made net purchases amounting to ₹2,228 crore. Meanwhile, Foreign Institutional Investors (FII) increased their net short position to ₹1.56 lakh crore.
As the market navigates through global and domestic cues, cautious optimism continues to dominate trading sentiments. Sectoral opportunities, particularly in pharma and healthcare, are likely to be the focus for long-term investors, even as broader market indices face resistance.
