Domestic benchmark indices opened higher on Tuesday, tracking the firm global cues and buying in select counters. US stocks settled higher on Monday, whereas major Asian stocks were shut on the account of Lunar New Year.
Investors are likely to remain positive on the back of China lifting stringent Covid restrictions. Sentiments among the traders are also likely to be on the optimistic side following the positive outlook given by companies while declaring their quarterly earnings.
At 9.20 am, the 30-share pack BSE Sensex was trading 182 points or 0.30 per cent higher at 61,123.68, whereas NSE’s Nifty50 Index gained 44.4 points or 0.25 per cent at 18,162.95.
Broader markets rose in tandem with the headline peers as BSE midcap and smallcap indices were up during the early trade. Fear gauge India VIX plunged about a per cent near 13.5-level.
“The index started the week on a positive note. The daily price action formed a high wave candle carrying a higher high-low formation, indicating continuance of positive momentum amid elevated volatility ahead of upcoming monthly expiry and Union Budget,” said ICICIDirect Research.
Only Nifty realty and pharma index were trading lower during the early few minutes of trade. PSU lenders led the gainers, followed by Nifty IT index. Auto, financial services and private lenders were also trading higher at the opening tick.
On the Nifty50 pack, Tata Motors topped the gainers with a 2 per cent rise. Infosys, Asian Paints, Adani Enterprises and Bajaj Finserv were also up by a per cent each. Wipro, IndusInd Bank, HDFC Bank, Tech Mahindra and Bajaj Finance also saw some buying interest from the traders.
Power Grid and Grasim were down a per cent each. Bharti Airtel, JSW Steel, Axis Bank and Coal India were the other bluechips which were dumped by the investors during the early few minutes.
A significant trend in the global equity market now is the outperformance of the mother market US. Hope of a soft landing for the US economy is increasing and the market is responding to this, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“The positive sentiments are favorable for a pre-budget rally, too. The ongoing momentum has the potential to break the 17800-18200 range on the upside. The stellar performance of the banking segment stands out in this Q3 results season. Remain invested in banking stocks, particularly the high-quality names, in spite of the run up in prices,” he said.
In the broader markets, Gravita rose 6 per cent after strong Q3 numbers. Zensar Technologies and Poonawalla Fincorp also jumped 5 per cent each after strong earnings in the December 2022 quarter. Route Mobile, Newgen Software, Shalimar Paints and Apar Industries were other key gainers.
On the contrary, Khaitan Chemicals, Xelpmoc Design and Tech, KBC Global topped among the losers dropping 4-6 per cent each. Tata Communications and Container Corporation shed 3 per cent each after muted performance in the December quarter. RBL Bank was down 3 per cent on the back of profit booking.
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