Sensex Rises as Positive Global Cues Boost Market Sentiment

Indian equity indices opened in the green on Tuesday following positive cues from Asian peers and US markets. At 9:39 a.m., Sensex was at 84,461, up 161 points or 0.19 per cent and Nifty was at 25,858, up 47 points or 0.18 per cent.
Market trend remained positive. On the National Stock Exchange (NSE), 1560 shares were in the green and 733 shares in the red.

Gainers of the day were Sensx pack through Tech Mahindra (NS:TEML), L&T, SBI (NS:SBI), M&M (NS:MAHM), Bajaj Finserv (NS:BJFS), Power Grid (NS:PGRD), Wipro (NS:WIPR), Kotak Mahindra (NS:KTKM), Bharti Airtel (NS:BRTI), ICICI Bank (NS:ICBK), and Tata Motors (NS:TAMO). The losers of the day were Asian Paints (NS:ASPN), JSW Steel (NS:JSTL), HUL, Tata Steel (NS:TISC), Maruti Suzuki (NS:MRTI), ITC, Sun Pharma (NS:SUN), and IndusInd Bank (NS:INBK).

Hardik Matalia, Derivative analyst, Choice Broking, "After a flat opening, Nifty can find support at 25,750 followed by 25,650 and 25,500. On the higher side, 25,950 can be an immediate resistance, followed by 26,000 and 26,050."

Meanwhile, midcap and smallcap shares are also in the bullish zone. The Nifty Midcap 100 index showed a rise of 54 points or 0.07 per cent at 60,207 while the Nifty Smallcap 100 index stood at 19,279, up 99 points or 0.52 per cent.

On the global front, Tokyo, Shanghai, Hong Kong, Bangkok, and Jakarta are trading in the green. Only markets of Seoul and Taipei are red. US markets closed in the positive on Monday.

Other market analysts said, "FII selling would be absorbed by DII buying and thus is unlikely to do serious long-term damage to the market. Since a significant portion of FII holding is there in banking stocks, this segment may continue to face downward pressure."

This will give long-term investors the scope to buy the frontline banking stocks. This segment is attractively valued and the sector is doing well. The worsening geopolitical situation in West Asia is becoming an area of concern, they added.

FIIs continued to sell as on September 30, it sold equities worth Rs 9,792 crore. Domestic Institutional Investors continue to buy as they bought equities worth Rs 6,645 crore on that day.