Indian equity markets opened higher for the second consecutive session on Tuesday, supported by falling crude oil prices, strong second-quarter earnings and renewed buying by foreign institutional investors (FIIs).
The Sensex climbed as much as 0.87 per cent, or over 600 points, to an intraday high of 76,358.79 in early trade. The Nifty rose 0.72 per cent, or around 170 points, to 23,610.70.
Financial services led sectoral gains, with the Nifty Financial Services ex-Bank index rising 1 per cent. Chemicals, FMCG and media stocks gained up to 0.77 per cent, while private banks, cement, information technology and consumer durables also traded higher. Healthcare and energy stocks, however, witnessed profit booking.
Market analysts said falling Brent crude prices, which declined to $104 per barrel, steady corporate earnings and renewed FII buying could support the ongoing rally. They also pointed to improving technical indicators, with the Nifty reclaiming its 50-day exponential moving average (EMA) near 23,170.
The Relative Strength Index (RSI) improved to 61.03, above its average of 47.90, while the put-call ratio (PCR) of 1.28 indicated a positive derivatives outlook. Analysts placed immediate support at 23,200-23,300 and resistance at 23,600-23,700.
They attributed the sharp gains in several stocks, including large-cap shares, to value buying and short-covering. They also noted that investors were unwinding short positions in quality large-cap stocks as foreign fund flows improved.
On Monday, FIIs recorded net equity purchases worth ₹3,114 crore for the second consecutive session. Domestic institutional investors (DIIs), however, remained net sellers, offloading shares worth ₹392 crore.
Markets will also track the outcome of the US midterm elections and its potential implications for geopolitical developments in the coming days.
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