Indian equity benchmarks rebounded in early trade on Tuesday, recovering from two consecutive sessions of decline. The 30-share BSE Sensex climbed 182.42 points to 76,661.36, while the 50-share NSE Nifty advanced 49.90 points to 23,916.85.
Market Performance
The positive opening comes after a two-day slump that saw the Sensex lose over 600 points. According to market analysts, buying in banking and IT stocks supported the recovery. Broader market indices also traded higher, with the BSE Midcap and Smallcap indices up 0.3% each.
Among Sensex components, HDFC Bank, Infosys, and Reliance Industries were the top contributors to the index's gains. On the Nifty, financial and technology stocks led the advance. Market breadth remained positive, with about 1,600 stocks advancing against 1,200 declining on the BSE.
Global Cues
Asian markets traded mixed on Tuesday, with Japan's Nikkei edging higher while China's Shanghai Composite slipped. Overnight, US stocks ended mostly higher, providing some support to domestic sentiment. However, concerns over rising crude oil prices and a strengthening US dollar continued to weigh on emerging markets.
Foreign portfolio investors (FPIs) remained net sellers in the cash market on Monday, offloading shares worth Rs 1,200 crore, according to provisional data. Domestic institutional investors (DIIs) bought shares worth Rs 900 crore.
Outlook
Analysts expect volatility to persist in the near term as investors monitor global macroeconomic data and corporate earnings. The auto sector will be in focus later this week as companies release monthly sales figures for June. Additionally, the progress of the monsoon and its impact on inflation will be closely watched.
According to market experts, the Nifty is likely to find support at 23,800-23,700 levels, while resistance is seen at 24,100-24,200. The Sensex has support at 76,200 and resistance at 77,000.
