The Indian stock market opened on a positive note on Tuesday with the key indices Sensex and Nifty hitting new highs, following healthy buying witnessed in oil and gas and energy stocks.
The BSE Sensex touched an all-time high of 51,606.25 and the Nifty50 on the National Stock Exchange a record high of 15,197.80 points within one hour after the opening of the markets but gradually trimmed down the gains.
The Sensex opened at 51,484.23 and had recorded an intra-day low of 51,377.70 points. Around 9.55 am, Sensex was trading at 51,415.41, higher by 66.64 points or 0.13 per cent from its previous close of 51,348.77. Nifty50 was trading at 15,143.15, higher by 27.35 points or 0.18 per cent from its previous close.
As of 11 a.m., Sensex was up by 287 points at 51,635.92, while the Nifty was at 15,204.45 points, up by 88.65 points on Tuesday from the closing of Monday markets.
Manish Hathiramani, technical analyst with Deen Dayal Investments, said: "The markets have continued their northward trajectory this morning and we are very close to the 15,200 target. While a pause at these levels cannot be ruled out, the overall trend for the Nifty remains positive and we should target 15500 as the next level of resistance." "A buy on dips is a prudent strategy to adopt in the current market scenario," he added.
The top Sensex gainers so far have been Titan Company, Asian Paints and Power Grid, while the major losers were Mahindra & Mahindra, Bajaj Finance and State Bank of India.
Meanwhile, Moody's Investors Service has changed India's power sector outlook from negative to stable indicating generation of growth. On February 6, India's Central Electricity Authority reported a 3.1 per cent year-on-year growth for the country's power generation in January, the fifth consecutive month of power generation growth after six months of decline driven by coronavirus pandemic.
"We have changed the outlook for the Indian power sector to stable from negative, recognising the better prospects for the sector as a result, amid an improved macroeconomic backdrop," Moody's Investors Service said in a statement. "Sustaining growth in power generation indicates a stabilisation of the operating environment, which was severely impacted by the lockdowns to contain the pandemic."
As per a statement, the expectations of a rebound in India's real GDP growth to 10.8 per cent in fiscal year ending March 31, 2022 after a sharp contraction of -8% in fiscal 2021.
The first 10 months of fiscal 2021, saw power generation growth decline to 2.9 per cent on a year-on-year basis. "Renewable energy generation (excluding hydropower) reported 4.3 per cent year-on-year growth for the same period," said the report.