The BSE Sensex rose 171 points, or 0.21%, to 81,323, while the Nifty50 gained 45 points, or 0.18%, trading at 24,826 at around 9:19 am.
From the Sensex pack, ICICI Bank, Infosys, UltraTech Cement, Reliance Industries, and Titan were the top contributors driving the index higher, while Tata Steel, SBI, Kotak Bank, Bajaj Finance, and Tata Motors opened in the red.
Meanwhile, Bajaj Housing Finance shares opened over 4% higher after the home loan financier reported a rise in second-quarter profit on strong credit demand.
Ola Electric shares surged 4.5% in early trade after the company announced it had resolved 99.1% of the 10,644 customer complaints, highlighting its robust consumer grievance redressal system.
On the sectoral front, the Nifty Realty index fell 1.5%, weighed down by Phoenix Mills, Prestige, and DLF. Nifty Auto, Metal, PSU Bank, and Oil & Gas also opened lower, while Nifty Financial Services, IT, Pharma, and Consumer Durables traded higher.Meanwhile, Hyundai Motor India is set to begin its debut trading session following its record $3.3 billion IPO, which was oversubscribed by more than two times last week.Experts View
“When market valuations are at elevated levels some triggers will cause corrections, making the valuations reasonable and in tune with long-term averages. This time the trigger for the correction has come from the sustained selling by FIIs which has reached Rs 88244 crores by 21st October, according to NSDL,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“The fact is that even after the correction triggered by the sustained FII selling, Indian market valuations are higher than historical averages even though largecap valuations can be justified by their long-term growth prospects. Since market sentiments continue to be negative a sharp and sustained recovery appears difficult even though a rebound can happen any time. Financials will be relatively resilient in the present market setting,” Vijayakumar added.
Hardik Matalia, Derivative Analyst at Choice Broking, said, “Nifty can find support at 24,700 followed by 24,650 and 24,550. On the higher side, 24,850 can be an immediate resistance, followed by 24,950 and 25,000.”
Global Markets
Asian stocks turned lower and the dollar stood by multi-month peaks on Tuesday as a sharp sell-off in bonds and a jump in gold suggested investors are hunkering down ahead of the US election.
Japan’s Nikkei slid 1.1% in morning trade to hit its lowest since early October. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.8%. Wall Street gauges edged down overnight and futures inched lower in Asia.
China’s markets were pinned well below recent highs while traders wait for more details and especially more government urgency and spending to support the ailing economy. Hong Kong’s Hang Seng was flat, as was the Shanghai Composite.
FII/DII Tracker
The foreign institutional investors (FIIs) extended their selling as they sold equities worth Rs 2,261 crore on October 21, while domestic institutional investors bought equities worth Rs 3,225 crore on the same day.
Crude Oil
Oil prices fell on Tuesday, paring the previous day’s nearly 2% rise as the top U.S. diplomat renewed efforts to push for a ceasefire in the Middle East, and as slow demand in China, the world’s top oil importer, continued to weigh on the market.
Brent crude futures for December delivery were down 26 cents, or 0.3%, at $74.03 a barrel. US West Texas Intermediate crude futures for November delivery were 2 cents lower at $70.54 a barrel on the contract’s last day as the front month.
Currency Watch
The Indian rupee opened flat at 84.07 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.05% to 103.96 level.
(With inputs from agencies)
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