Stock Market Rises: Sensex, Nifty open in green
The stock market experienced a positive turn on Tuesday, with the Sensex and Nifty opening higher. This uptick came after the Reserve Bank of India (RBI) infused Rs 1.5 lakh crore of liquidity to enhance investor confidence.
The Nifty 50 index began trading 131.30 points, or 0.58 percent, higher at 22,960.45, whereas the BSE Sensex increased by 292.83 points, or 0.39 percent, to 75,659.
AI and semiconductor stocks experienced a major decline globally on Monday, with AI leader Nvidia falling by as much as 10 percent. Concerns over increasing competition from the Chinese AI start-up DeepSeek caused this slump.
Banking and market expert Ajay Bagga said, "The RBI's infusion of Rs 1.5 lakh crore in liquidity is significantly boosting market sentiment today. This move raises the likelihood of a rate cut next week, further enhancing today's market outlook. Banks are expected to rally, contributing positively. Indices are also anticipated to see slight improvements."
He also said, "Within sectoral indices, Nifty Bank increased by more than 1 percent, whereas Nifty Pharma declined by 1.14 percent. As of the time this report was filed, all other indices, except for pharma and FMCG, were on the rise. Even though our long-term perspective on the stock market is negative, the current low sentiment is expected to cause a short-term recovery. Regarding bullion, we have maintained a long-term positive outlook, but we believe the current enthusiasm is overblown. Conversely, the real estate market is approaching its peak, and we anticipate minimal price growth in both the near and distant future."
In today's Q3 earnings report, several major companies, including Bajaj Auto, Hindustan Zinc, Hyundai Motor India, Cipla, TVS Motor Company, JSW Energy, CG Power & Industrial Solutions, Bosch, GMR Airports, Colgate-Palmolive (India), SBI Cards & Payment Services, and Suzlon Energy, are set to announce their Q3 results.
Akshay Chinchalkar, Head of Research, Axis Securities, said, "Nifty has now reached a zone where the Covid-era upward trend line has decreased by roughly one percent. This makes it an important indicator to watch. For today's session, support lies between 22725 and 22787. The gap from yesterday's opening bell acts as a resistance at 23050, which is the first obstacle the bulls need to clear for some initial relief."
The NSE500, reflecting the broader market, now has 9 percent and 8 percent of its members trading above the 50- and 100-day averages, indicating that the current downturn is quite advanced and the chances of short-covering are substantial.
Meanwhile, in Asia, Japan's Nikkei 225 fell by 0.57 percent, whereas Hong Kong's Hang Seng rose by 0.22 percent at the time this report was recorded. Markets in Taiwan and South Korea were closed.