Mumbai, Oct 6: Indian equity markets opened on a positive note on Tuesday, helped by stronger global cues and buying interest in private banking stocks. However, analysts remained cautious, pointing to continued foreign selling, elevated US bond yields and uncertainty over crude oil prices.
The Nifty 50 opened at 22,603.25, gaining 47.50 points, or 0.21 per cent, while the Sensex started at 72,508.05, up 125.58 points, or 0.17 per cent.
Private-sector banks emerged as the early leaders, with the Nifty Private Bank index rising 0.75 per cent. The Nifty MidSmall IT & Telecom index advanced 0.50 per cent, while the metal index gained 0.32 per cent.
Chemical, energy, financial services and cement stocks also traded in positive territory during the opening session. In contrast, PSU banks and FMCG stocks remained largely flat.
Among the laggards, the Nifty Auto index declined 0.40 per cent, while healthcare, pharma and consumer durables stocks also faced some selling pressure. Realty, IT and media stocks were marginally lower.
Global cues provide support
The domestic market received a boost from positive global sentiment, with Asian equities trading higher in early trade. The gains followed a technology-led rally on Wall Street that pushed the Nasdaq to a fresh record high.
Market experts described the near-term outlook as cautiously positive, although they warned that the broader market structure remains fragile following the recent decline.
According to analysts, the strength of the recovery in the opening hours, along with participation across a wider range of stocks, will be important in determining whether the current rebound can continue.
FII selling remains a concern
Despite support from domestic investors, foreign institutional selling continues to weigh on market sentiment. FIIs sold Indian equities worth Rs 4,699 crore on Monday, while DIIs bought shares worth Rs 5,181 crore, providing a cushion to the market.
Analysts said the market could continue to remain in a “sell-on-rally” phase as elevated US bond yields may encourage continued FII outflows. Strong domestic fund inflows, however, are helping DIIs provide support, particularly to large-cap stocks.
Crude oil prices remain another key factor. A meaningful and sustained market recovery is likely to require a significant decline in crude prices, although analysts said there is currently no clear indication of such a move.
Nifty outlook
On the technical front, analysts see 23,100–23,220 as the next potential upside zone, while 22,800 could act as an intermediate hurdle.
The 22,555–22,615 range remains important for the immediate market direction. A sustained move above this band could strengthen the recovery, while failure to cross it may keep the index in a consolidation phase.
On the downside, analysts expect support to emerge around 22,050, limiting the immediate risk of a deeper decline.
Overall, Tuesday’s opening suggests that investors are regaining some confidence, but the market still needs stronger breadth and sustained buying to confirm that the recent weakness has bottomed out.