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Image Source : PTI/FILE Stock markets continue to rally in early trade for 4th consecutive days
Stock Markets update: Equity benchmark indices maintained their winning streak for the fourth day running on Tuesday, helped by continuous foreign fund inflows. The 30-share BSE Sensex climbed 131.32 points to 62,977.70 in early trade. The NSE Nifty advanced 49.6 points to 18,648.25.
From the Sensex pack, ITC, UltraTech Cement, Kotak Mahindra Bank, HCL Technologies, NTPC, Titan, Bharti Airtel, Bajaj Finance, Larsen & Toubro and Reliance Industries were the biggest gainers. Nestle, Tata Steel, HDFC, Tata Consultancy Services and HDFC Bank were the laggards.
How did Asian markets fare?
In Asian markets, Tokyo, Shanghai and Hong Kong were trading lower, while Seoul quoted in the green. Foreign Institutional Investors (FIIs) were net buyers on Monday as they bought equities worth Rs 1,758.16 crore, according to exchange data.
“FIIs’ relentless buying and hopes of a Fed rate hike pause could help maintain the buying momentum,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Meanwhile, global oil benchmark Brent crude dipped 0.52 per cent to USD 76.67 a barrel.
“So long as this foreign portfolio liquidity remains strong, the market will remain resilient. The underlying market momentum indicates an uptrend that can take the market higher. But investors need not expect a sustained sharp rally since valuations don’t warrant that and profit-booking will exert selling pressure,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
US markets: Strong earnings season likely
The US markets were closed on Monday for Memorial Day, said Deepak Jasani, Head of Retail Research, HDFC securities.
“While the debt ceiling deal is likely to calm market jitters, and with a strong earnings season out of the way, investors now turn their attention to the economic outlook and path of interest rates,” Jasani added. The Sensex climbed 344.69 points or 0.55 per cent to settle at 62,846.38 on Monday. The Nifty gained 99.30 points or 0.54 per cent to end at 18,598.65.
ALSO READ: Equity markets rally in early trade; Rupee rises 5 paise against dollar
Rupee falls 4 paise against US dollar
Meanwhile, the rupee depreciated by 4 paise to 82.67 against the US dollar in early trade on Tuesday, tracking a strong American currency against major rivals overseas. Forex traders said downward movement in crude price and inflows of foreign funds, however, capped the fall in the Indian currency.
Meanwhile, the dollar strengthened as investors were upbeat on the tentative agreement between US President Joe Biden and Republican House Speaker Kevin McCarthy on the debt ceiling, which is likely to face voting on Wednesday before getting sealed.
Traders were also keeping an eye on the US non-farm payroll (NFP) data to be released on Friday.
“Rupee traded in a narrow range and volatility remained low as most market participants remained on the sidelines following the US market holiday. On the other hand, the dollar was weighed down after preliminary talks between the Republicans and Democrats sailed through.
(With inputs from PTI)
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