Mumbai– Indian stock markets opened higher on Tuesday, extending their winning streak to a fifth consecutive session, but gave up early gains to trade nearly flat as investors turned cautious ahead of key developments in US-China trade talks.
By 9:17 a.m., the BSE Sensex was up just 28.49 points, or 0.03%, at 82,473.70, while the NSE Nifty rose 21.15 points, or 0.08%, to 25,124.35.
Sector-wise, technology, metals, and media stocks saw strong buying interest, while banking shares came under mild pressure due to profit booking. Broader markets remained resilient, with small-cap and mid-cap indices gaining up to half a percent, reflecting continued investor interest across the board.
“Yesterday’s rally was a follow-through on Friday’s upside for the Nifty,” said Akshay Chinchalkar, Head of Research at Axis Securities. “From a technical standpoint, whether it’s a breakout from a pennant or a rectangle formation, the pattern suggests a bullish target of 25,800. For now, 25,200 is the key resistance. As long as the index stays above 24,800, bulls maintain control. The conclusion of the US-China talks later today could set the tone for the next move.”
Vikram Kasat, Head of Advisory at PL Capital, noted that while diplomatic efforts to ease US-China tensions are encouraging, a broad-based agreement is still a long way off. “Investors will also be watching for concrete progress in trade negotiations with other partners,” he said.
With valuations having stretched after recent gains, some analysts are advising investors to book profits selectively in case of unforeseen global developments.
In global markets, the S&P 500 closed marginally higher on Monday, buoyed by gains in tech giants Amazon and Alphabet as investors remained focused on developments in Washington and Beijing. Asian markets also traded in positive territory on Tuesday, supported by optimism over the trade dialogue.
Foreign institutional investors (FIIs) remained net buyers for a second straight day, purchasing ₹1,992 crore worth of Indian equities on Monday. Domestic institutional investors (DIIs) also extended their buying streak for the 15th consecutive session, picking up shares worth ₹3,503 crore. (Source: IANS)
