Mumbai: India’s frontline equity indices Tuesday surged in a massive bull rally in the early trade, as positive global cues improved investors’ sentiment.
After the opening bell, the Nifty 50 was trading 467 points or 2.05 per cent higher at 23,295.55, and the Sensex was trading 1,569.89 points or 2.09 per cent higher at 76,727.15.
All the sectoral indices traded in the green, with Nifty Auto jumping nearly three per cent to lead the pack. The Nifty Bank index soared two percent, while the IT, pharma, and metal indices also recorded strong gains.
Tata Motors, M&M and Bharat Forge shares soared up to eight per cent in the early session.
The broader markets underperformed the benchmarks, as the Nifty Smallcap 100 and Nifty Midcap 100 gained 1.3 per cent each in early trade.
Rupee strengthened 20 paise to open at 85.85 against US dollar. It ended at 86.05 a dollar Friday.
According to market watchers, US President Donald Trump’s pause on tariffs for 90 days brought cheer to the markets
“After the positive opening, Nifty is likely to find support at 23,000, followed by 22,900 and 22,800. On the upside, 23,200 may act as the immediate resistance, followed by 23,360 and 23,500,” said Mandar Bhojane from Choice Broking.
On the institutional front, foreign institutional investors (FIIs) continued their selling streak for the ninth consecutive session April 11, offloading equities worth Rs 2,519 crore. In contrast, domestic institutional investors (DIIs) remained net buyers, purchasing equities worth Ts 3,759 crore on the same day.
Overall, while the bulls seem to hold the current momentum, intraday volatility and profit booking near resistance zones remain likely, said experts.
“Trump’s pivot indicates a more conciliatory approach and opens the way for negotiations. While we may have seen the worst of trade uncertainty, the road ahead is still rocky. Nevertheless, with volatility near historic extremes, there is more potential for a decline than an increase,” said Devarsh Vakil, Head of Prime Research, HDFC Securities.
IANS
