Share Market Update: Equity benchmark indices extended their winning streak for the fourth consecutive day on Tuesday, helped by steady foreign fund inflows. In early trade, the 30-share BSE Sensex climbed 131.32 points to 62,977.70 points. The NSE Nifty rose 49.6 points to 18,648.25.
From the Sensex pack, ITC, UltraTech Cement, Kotak Mahindra Bank, HCL Technologies, NTPC, Titan, Bharti Airtel, Bajaj Finance, Larsen & Toubro and Reliance Industries were the biggest gainers. Nestle, Tata Steel, HDFC, Tata Consultancy Services and HDFC Bank were the laggards.
How have Asian markets fared?
In Asian markets, Tokyo, Shanghai and Hong Kong were trading with losses, while Seoul was trading in the green. Foreign institutional investors (FIIs) were net buyers on Monday, buying shares worth Rs 1,758.16 crore, according to exchange data.
“Continued FII buying and expectation of a Fed rate hike could help maintain the buying momentum,” said Prashant Tapase, Senior VP (Research), Mehta Equities Ltd.
Meanwhile, global oil benchmark Brent crude fell 0.52 per cent to USD 76.67 per barrel.
“As long as this foreign portfolio liquidity remains strong, the market will remain resilient. The momentum in the underlying market indicates an uptrend which may drive the market higher. But investors should not expect a sustained sharp rally as Valuations do not warrant further gains – VK Vijayakumar, chief investment strategist at Geojit Financial Services, said bookings would increase selling pressure.
US market: Strong earnings season likely
Deepak Jasani, head of retail research at HDFC Securities, said the US markets were closed on Monday for Memorial Day.
“While the debt ceiling deal is likely to calm market jitters, and with a strong earnings season ahead, investors now turn their attention to the economic outlook and the path of interest rates,” Jasani said. On Monday, the Sensex climbed 344.69 points or 0.55 percent to close at 62,846.38. The Nifty closed at 18,598.65, up 99.30 points or 0.54 per cent.
Read also: Equity markets up in early trade; Rupee up 5 paise against dollar
Rupee falls 4 paise against US dollar
Meanwhile, the rupee depreciated 4 paise to close at 82.67 against the US dollar in early trade on Tuesday tracking a stronger American currency against key rivals overseas. Forex traders said fall in crude oil prices and inflow of foreign funds capped the fall in the Indian currency.
Meanwhile, the dollar strengthened as investors cheered on a tentative deal on the debt ceiling between US President Joe Biden and Republican House Speaker Kevin McCarthy, which is likely to face a vote on Wednesday before being sealed.
Traders are also tracking US non-farm payrolls (NFP) data to be released on Friday.
“Rupee traded in a narrow range and volatility remained low as most market participants remained on edge after US market holiday. On the other hand, dollar weighed down after preliminary talks between Republicans and Democrats.
(With inputs from PTI)