Indian equity gauges opened higher on Tuesday, following mixed worldwide cues, as US Chief Negotiator Brendan Lynch visited New Delhi to resume trade negotiations between the US and India.
Up to 9:25 am, Sensex had gained 184 points, or 0.23 per cent, to 81,970, while the Nifty rose 47 points, or 0.19 per cent, to 25,117.
Wider marketplaces left the frontline indices behind, with Nifty Midcap 100 increasing by 0.26 per cent and Nifty Smallcap 100 increasing by 0.70 per cent. On the Nifty 50, the biggest contributors to gains were Kotak Mahindra Bank, Axis Bank, and Hero Motocorp, while the laggards were Titan Company, SBI Life Insurance, Asian Paints, and Tata Consumer Products.
Sector-wise, Nifty Media led the pack with a 1.08 per cent rise, followed by Nifty Auto (up 0.65 per cent) and Nifty Oil & Gas (up 0.57 per cent). All other indices were in the green except for Nifty FMCG and Nifty PSU Bank, which fell marginally.
Analysts pointed out important technical levels for investors. A strong breakout above 25,160 could pave the way towards 25,250 and 25,500 levels, while short-term support stands at 25,000 and 24,900.
Describing the market context, VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted: "The bold fiscal and monetary reforms made this year have already begun reaping benefits and is expected to gain momentum in near future. A US-India trade deal sans the punitive tariffs can be a boost to markets."
Overnight, Wall Street closed in the plus column with the Nasdaq increasing 0.94 per cent, S&P 500 up 0.47 per cent, and the Dow increasing 0.11 per cent.
Most markets in Asia went up in morning trades. Nikkei in Japan gained 0.54 per cent, Hang Seng in Hong Kong gained 0.07 per cent, while the Kospi in South Korea rose by 1.2 per cent. However, China's Shanghai index dropped 0.1 per cent, while Shenzhen went down by 0.26 per cent.
At the same time, investors are penciling in a 96.4 per cent probability of a 25-basis-point rate cut by the Fed on September 17, with predictions of additional cuts by the end of the year.
Domestically, foreign institutional investors (FIIs) sold equities worth Rs 1,268 crore on Monday, whereas domestic institutional investors (DIIs) were net buyers of Rs 1,933 crore.
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