Sensex, Nifty Open Higher As Private Banks Lead Early Gains

Indian equity benchmarks opened higher on Tuesday, supported by positive global cues and buying in private banking stocks.

However, analysts maintained a cautious outlook amid recent market weakness and continued foreign investor selling.

The Nifty opened at 22,603.25, gaining 47.50 points or 0.21 per cent, while the Sensex rose 125.58 points or 0.17 per cent to 72,508.05.

Private banks led sectoral gains in early trade, with the Nifty Private Bank index rising 0.75 per cent. The Nifty MidSmall IT & Telecom index gained 0.5 per cent, while the metal index advanced 0.32 per cent.

Chemical, energy, financial services and cement stocks also traded higher, while PSU banks and FMCG stocks remained largely flat.

Nifty Auto declined 0.4 per cent, while healthcare, pharma and consumer durables also traded lower. Realty, IT and media stocks recorded marginal losses.

Market experts described the near-term outlook as cautiously constructive, supported by the firm opening and improved global cues. However, they said broader market participation would determine whether the recovery can sustain.

Analysts warned that the market could remain in a ‘sell on rally’ mode as elevated US bond yields may encourage continued selling by foreign institutional investors (FIIs). Domestic institutional investors (DIIs), however, continued to support large-cap stocks amid strong fund inflows.

FIIs remained net sellers on Monday, offloading Indian equities worth ₹4,699 crore, while DIIs bought shares worth ₹5,181 crore.

Analysts said a sustained rally would require a sharp fall in crude oil prices, although no clear indication of such a move has emerged.

On the technical front, they see 23,100-23,220 as near-term targets, with 22,800 as an intermediate hurdle. Failure to cross the 22,555-22,615 range could trigger further consolidation, while support is likely around 22,050.

Asian markets also traded higher after a technology-led rally pushed the Nasdaq to a fresh record high.

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