Sensex, Nifty open higher with private banks leading sectoral gains
Sensex, Nifty open higher with private banks leading sectoral gainsIANS

Mumbai: Indian equity benchmarks opened higher on Tuesday, buoyed by positive global cues and strong buying interest in private banking stocks.

The Nifty commenced at 22,603.25, marking a rise of 47.50 points or 0.21 per cent.

Similarly, the Sensex started at 72,508.05, climbing 125.58 points or 0.17 per cent.

The Nifty Private Bank index led sectoral gains with a 0.75 per cent increase in early trade.

Other indices like Nifty MidSmall IT & Telecom rose by 0.5 per cent, while the metal index advanced 0.32 per cent.

Chemical, energy, financial services, and cement sectors also traded higher, whereas PSU banks and FMCG were mostly flat.

Conversely, the Nifty Auto index dropped 0.4 per cent, with healthcare, pharma, and consumer durables also declining marginally, alongside slight falls in realty, IT, and media indices.

Market experts described the near-term sentiment as cautiously constructive, supported by a firm start and improved global factors, though the overall outlook remains tentative after recent declines.

Analysts noted that a sustained recovery during the opening hours, accompanied by broader market participation, is crucial to determine if the ongoing bounce can continue.

They indicated that the market may remain in a 'sell on rally' pattern due to elevated US bond yields, prompting foreign institutional investors (FIIs) to sell, even as domestic institutional investors (DIIs) backed large-cap stocks with strong fund inflows.

Experts also highlighted that a sustained rally would demand a significant drop in crude oil prices, a move not currently evident.

From a technical perspective, analysts see near-term targets between 23,100 and 23,220, with 22,800 likely to present intermediate resistance.

Failure to break above the 22,555-22,615 range could lead to further consolidation, while the downside appears contained around 22,050 for now.

FIIs remained net sellers in Indian equities on Monday, offloading shares worth Rs 4,699 crore, whereas DIIs provided support with net purchases totalling Rs 5,181 crore.

Elsewhere, Asian shares traded higher in early hours, driven by a technology-led rally that lifted the Nasdaq to a new record high.

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