Indian Equity Indices Rise On Strong Performances By UltraTech Cement, NTPC, & L&T

Indian equity indices showed a positive trend on Tuesday, buoyed by strong performances in shares of major companies like UltraTech Cement, NTPC, and L&T.

By 9:59 AM, the BSE benchmark Sensex surged by 258 points, or 0.32%, reaching 81,308, while the Nifty index climbed 58.20 points, or 0.23%, to settle at 24,853.

The Sensex witnessed notable gains from several key players, including UltraTech Cement, Mahindra & Mahindra (M&M), Axis Bank, Hindustan Unilever (HUL), State Bank of India (SBI), L&T, HDFC Bank, ICICI Bank, Bharti Airtel, NTPC, Asian Paints, Kotak Mahindra Bank, and IndusInd Bank.

Conversely, the day was less favorable for companies like Tata Steel, Tata Motors, JSW Steel, Wipro, Titan, HCL Technologies, Infosys, TCS, Power Grid, Tech Mahindra, Bajaj Finance, Maruti Suzuki, and Nestlé, which were among the top losers.

The banking sector significantly supported the rally, with the Nifty Bank index increasing by 262 points, or 0.56%, to reach 50,759.

Additionally, various sectoral indices, including financial services, PSU banks, FMCG, media, private banks, infrastructure, services, and healthcare, posted gains, while auto, IT, metal, realty, and energy sectors lagged behind.

Midcap and small-cap stocks also experienced an upswing, with the Nifty midcap 100 index gaining 376 points, or 0.66%, to hit 57,676, and the Nifty smallcap 100 index rising by 108 points, or 0.60%, to reach 18,351.

In the broader Asian market, trading was mixed. While markets in Tokyo, Hong Kong, and Seoul recorded losses, those in Bangkok and Jakarta enjoyed gains. The US stock markets also closed lower on Monday.

Market Sentiment Weakens As Indices Decline Amid Geopolitical Tensions & FPI Selling

Market analysts noted that the overall market sentiment has weakened due to various factors, including rising geopolitical tensions in the Middle East, substantial selling by foreign portfolio investors (FPIs), and anxieties surrounding upcoming election results.

“The Nifty has dropped 5.6% from its peak, primarily driven by consistent FPI selling over the past six trading sessions,” they commented.

FPIs have sold a net total of Rs 50,011 crore in the last six sessions, while domestic institutional investors (DIIs) have counterbalanced this trend by purchasing Rs 53,203 crore worth of shares.

Analysts suggest that a prudent approach for investors now is to focus on accumulating high-quality, fairly valued blue-chip stocks, particularly within the financial and IT sectors.

Also Read: RBI Likely To Keep Repo Rate Unchanged Amid Geopolitical Tensions: Experts