Equity benchmark Sensex jumped nearly 245 points in early trade on Tuesday, tracking gains in index majors HDFC, TCS and Infosys and supported by positive macroeconomic indicators. The 30-share index was trading 244.77 points or 0.46 percent higher at 53,195.40 in initial deals, while the broader NSE Nifty advanced 56.85 points or 0.36 percent to 15,942.
Asian Paints led the Sensex pack with a gain of around 3%, followed by Titan, PowerGrid, HDFC, M&M, and Tech Mahindra. HCL Tech, Bajaj Auto, Tata Steel, ICICI Bank, and NTPC, on the other hand, were among the laggards. The Sensex rose 363.79 points, or 0.69 percent, to 52,950.63 in the previous session, while the Nifty rose 122.10 points, or 0.77 percent, to 15,885.15.
According to provisional exchange data, foreign institutional investors (FIIs) were net sellers in the capital market on Monday, offloading shares worth Rs 1,539.88 crore. Fundamental support for the bulls has come from good corporate results, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
‘Now the macros are turning very positive with the declining fiscal deficit, rising tax collections, and now the excellent performance in exports which shot up by 48 per cent in July. The PMI at 55.3 indicates a potential sharp turnaround in economic activity.’
‘This can embolden the bulls to take Nifty beyond 15,950 early in August unless FIIs turn massive sellers at those levels,’ he said.
In other Asian markets, Tokyo and Hong Kong bourses were down in mid-session deals, while Shanghai and Seoul were up. Meanwhile, Brent Crude, the international oil benchmark, rose 0.07 percent to USD 72.94 per barrel.