Indian stock markets continued their rally for the seventh consecutive session, with Nifty opening at 23,751.50 and Sensex rising by 311.90 points. Strong FPI inflows and positive global cues fuelled the surge, though analysts advise caution over resistance levels
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Indian equity markets extended their rally for the seventh consecutive session on Tuesday, as both the Nifty 50 and BSE Sensex opened on a positive note, buoyed by strong foreign institutional buying and improving global sentiment.
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According to ANI, the Nifty 50 index commenced trading at 23,751.50, marking a gain of 93.15 points or 0.39 per cent, while the BSE Sensex opened 311.90 points higher, up 0.40 per cent at 78,296.28. Analysts attribute the sustained uptrend to foreign portfolio investors (FPIs) stepping up their purchases, alongside domestic investors capitalising on the recent rally.
Ajay Bagga, a banking and market expert, told ANI that Indian markets have benefited from significant short-covering by FPIs, as well as domestic investors who were caught off guard by last week's strong performance. "The benchmark indices saw a sharp 4 per cent jump last week, while the broader indices surged over 7 per cent. This has led to renewed investor interest. Notably, the FPI net inflow into the cash markets is the first significant positive movement since December and September of 2024," Bagga stated.
He further pointed out that improving global sentiment has also contributed to the market rally. However, he cautioned that global trade concerns remain, particularly with former US President Donald Trump expected to announce new reciprocal trade tariffs on April 2. "The news, first reported by The Wall Street Journal, suggests that the proposed tariffs will be less broad-based and will include multiple sectoral and national exemptions. This has led to a relief rally in global markets," Bagga explained.
As per ANI reports, all sectoral indices on the National Stock Exchange (NSE) opened in positive territory, indicating a broad-based recovery. The Nifty PSU Bank index rose 0.62 per cent, continuing its strong momentum from Monday’s 3 per cent surge. Additionally, Nifty Auto gained 0.51 per cent, Nifty IT advanced 0.87 per cent, and Nifty PSU Bank also recorded a 0.62 per cent gain.
Among the top gainers in the Nifty 50 opening session were Ultratech Cement, HCL Technologies, Tata Consultancy Services (TCS), Infosys, and Wipro. Meanwhile, Dr. Reddy’s Laboratories, Britannia, IndusInd Bank, and Apollo Hospitals emerged as the biggest losers.
Akshay Chinchalkar, Head of Research at Axis Securities, told ANI that while the Nifty has maintained its upward trajectory for six consecutive sessions, there is an increased demand for protection via the India VIX due to the swift nature of the rally. "Although market breadth has remained positive, the rapid ascent has created three upside gaps since the March 17 low. This has pushed certain near-term indicators into overbought territory, necessitating caution among bullish traders. Key resistance levels for the day are expected around the 23,827-23,960 range, while immediate support is likely to be found near 23,402," Chinchalkar noted.
(With inputs from ANI)
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