Sensex, Nifty open higher as financial stocks gain, large caps in focus

Benchmark stock market indices opened Tuesday’s trading session on a positive note as financial and banking stocks gained.

The S&P BSE Sensex was up 167.71 points at 77,508.79 at 10 am, while the NSE Nifty50 gained 39.65 points to trade at 23,577.5. All the other broader market indices also opened in the green even as volatility remains on the higher side.

Nifty Bank and Nifty Financial Services were among the top sectoral indices, registering gains of 0.6-0.7%. However, Nifty Realty fell over 1.2% and was the top loser.

The top five gainers on the Nifty50 were Axis Bank, Ultratech Cement, HDFC Bank, Britannia and Hero MotoCorp. On the other hand, the top losers were BPCL, HCLTech, Adani Ports, Asian Paints and NTPC.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The sharp bounce back in Nifty by 7.5% from the June 4 lows indicates that the undercurrent of this market is bullish. High valuations may prompt selling by FIIs and profit booking by DIIs but the exuberant retail investors are likely to buy every dip since the ‘buy on dip strategy’ has worked very well in this bull market.”

“A positive news from the market perspective is the current account turning surplus in Q4 FY24. This will take away the pressure on the rupee and pave the way for FII inflows when clarity emerges on the Fed rate cuts,” Vijayakumar noted.

“The churn in the market in favour of fairly valued largecaps, particularly in banking, is likely to continue. From a valuation perspective, PSU banks look attractive,” he added.