India's benchmark stock indices, the S&P BSE Sensex and the NSE Nifty50, kicked off Tuesday's trading session on a positive note as financial and banking stocks surged, while large caps remained in focus.
At 10 am IST, the S&P BSE Sensex was up 167.71 points at 77,508.79, and the NSE Nifty50 gained 39.65 points to trade at 23,577.5. The broader market indices also saw gains, despite heightened volatility in early trading.
Leading the charge were sectoral indices such as Nifty Bank and Nifty Financial Services, which registered gains of 0.6% to 0.7%. However, Nifty Realty bucked the trend, falling over 1.2% and emerging as the top loser among sectoral indices.
Among the top performers on the Nifty50, Axis Bank, Ultratech Cement, HDFC Bank, Britannia, and Hero MotoCorp led the gainers. Conversely, BPCL, HCLTech, Adani Ports, Asian Paints, and NTPC faced selling pressure and were the top losers.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the market's dynamics, stating, "The sharp rebound in Nifty by 7.5% from its June 4 lows suggests bullish underlying sentiment. While high valuations may trigger selling by Foreign Institutional Investors (FIIs) and profit booking by Domestic Institutional Investors (DIIs), retail investors continue to show enthusiasm, employing a 'buy on dip' strategy effectively in this bullish phase."
Highlighting a positive development, Vijayakumar noted, "The current account surplus in Q4 FY24 is favorable news for the market as it alleviates pressure on the rupee and sets the stage for potential FII inflows once there's clarity on Fed rate cuts."
Looking ahead, he suggested, "The market trend favors fairly valued largecaps, particularly in the banking sector. From a valuation standpoint, PSU banks appear attractive."
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