Equity benchmark Sensex jumped over 200 points in the opening trade on Tuesday, tracking gains in index majors Infosys, Reliance Industries and Asian Paints amid positive trend in global markets.
The 30-share BSE index traded 274.03 points or 0.54 per cent up at 50,669.11, and the broader NSE Nifty traded 75.10 points or 0.50 per cent higher at 15,004.60.
Asian Paints was the top gainer in the Sensex pack, rising around 2 per cent, followed by Titan, UltraTech Cement, Bharti Airtel, Infosys, Reliance Industries and M&M. Bajaj Auto, NTPC and SBI were the laggards in the early hours of trade on Tuesday.
Advertisement
In the previous session, Sensex had ended 397 points or 0.78 per cent lower at 50,395.08. The broader NSE Nifty finished 101.45 points or 0.67 per cent down at 14,929.50.
Foreign institutional investors (FIIs) were net sellers in the capital market on Monday as they sold shares worth Rs 1,101.35 crore.
“We are now in a highly volatile phase where the market swings on a daily basis, responding to major triggers. The major trigger now is the US bond yield which has the potential to move huge money,” says VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Rising bond yield triggers selling in equity markets and when yields cool down, buying resumes.
Advertisement
He adds that bear hammering and short covering are making markets excessively volatile. “Consecutive two days of institutional selling – by both FIIs and DIIs – weakened the Indian market. But this is not a directional trend. After the Federal Open Market Committee (FOMC) meet and a possible affirmation of the dovish stance by the Fed, the market may resume its upward move. Presently top quality financials present a buying opportunity,” he points out.
Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading on a positive note in mid-session deals. US equities too ended with gains in the overnight session.
Global oil benchmark Brent crude was trading 0.83 per cent lower at $68.31 per barrel.
