After staying close on the first day of the week on account of Independence Day on Monday, the Indian market opened on a strong note amid positive global cues on Tuesday. The Benchmarks indices rose around 0.4% each amid rate cut by China.
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The broader Nifty 50 opened near 17,800 and the Sensex added over 200 points on the settlement holiday due to Parsi New Year on Tuesday. The former even touched the 17,800-mark soon after opening at 17,797.20, while the latter started at 59,675.12. A settlement holiday is when the markets are open, but the depositories (NSDL and CDSL) are closed. A settlement holiday only delays the execution of a transaction in stocks by a day.
In the broader market, Nifty Midcap and Smallcap gained half per cent each in the opening trade.
Sectorally, except Metal, all indices traded in the green with Nifty Auto, Realty and Private Bank gaining the most.
Earlier in the pre-opening session, the Sensex rose by more than 200 points and 24 stocks advanced, five declined and one remained neutral on the 30-share Sensex around 9.10 am on Tuesday.
Speaking on the current market trends, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the surprise rate cut in China when the rest of the world is hiking rates is an indication of the sharp growth slowdown in China, triggered by the widespread Covid lockdowns and woes of the property market.
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“With other BRICS economies like Brazil and South Africa struggling and Russia expected to contract by 9% this year, India stands out with an expected growth rate of 7.2% in FY 23,” he said.
A steady decline in CPI inflation (6.7% in July), Brent crude falling to $94 and steady buying by FIIs augur well for the markets, said the expert. “However, high valuations are a concern. While remaining invested, investors must exercise caution chasing this rally,” the expert added.
Earlier, SGX Nifty was seen trading higher by 60 points in the early trade on the Singaporean exchange on Tuesday morning. Similarly, Japanese Nikkei 225 gained 0.10%, Hang Seng Index rose 0.49%and Chinese Shanghai Composite was trading higher by 0.33% in the early trade on Tuesday.
