The Indian stock market opened positively on Tuesday, with buying activity seen in the IT and pharma sectors.
In early trade, the Sensex increased by 239.33 points, reaching 81,390.60, while the Nifty rose by 72.95 points to 24,854.05. Despite this upward movement, the overall market trend remained negative.
On the National Stock Exchange (NSE), 679 stocks were trading in the green, while 1,668 stocks were in the red. The Nifty Bank index stood at 52,192.10, gaining 229.40 points or 0.44 percent. However, the Nifty Midcap 100 index slipped by 193.25 points, reaching 57,484.45, while the Nifty Smallcap 100 index gained 80.30 points to settle at 18,717.10.
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Among the top gainers in the Sensex pack were UltraTech Cement, Titan, PowerGrid, Infosys, and ICICI Bank. In contrast, Tata Steel, Kotak Mahindra Bank, SBI, Bajaj Finance, and Tata Motors were among the top losers.
In the Nifty pack, Adani Enterprises, Adani Ports, Maruti, Infosys, and ICICI Bank topped the gainers list. Meanwhile, SBI Life, Shri Ram Finance, UltraTech Cement, and HDFC Life faced losses.
Looking at Asian markets, Shanghai and Hong Kong were trading higher, while Jakarta, Bangkok, and Japan were in the red. The US stock market closed lower during its last trading session.
Market experts note that elevated valuations can trigger corrections, aligning them with long-term averages. This time, sustained selling by foreign institutional investors (FIIs), which reached Rs 88,244 crore by October 21, has been a significant factor.
Analysts suggest that while market sentiments remain negative, a sharp and sustained recovery is challenging, even though a rebound could happen at any time. They also believe that financial stocks will be relatively resilient in the current market environment.
On October 21, FIIs sold equities worth Rs 2,261 crore, while domestic institutional investors (DIIs) purchased equities worth Rs 3,225 crore on the same day.
