The Indian market opened on a bullish note on Tuesday amid encouraging global cues after remaining closed on Monday due to Independence Day. The Benchmark indices increased by about 0.4% each when China lowered its interest rate.
The Sensex gained more than 200 points on Tuesday’s settlement holiday, and the broader Nifty 50 began close to 17,800. While the latter began at 59,675.12, the former even reached the 17,800-mark shortly after beginning at 17,797.20.
Nifty Midcap and Smallcap each had a 5% increase in the opening trade of the whole market.
All indices traded in the green, with the exception of the Metal sector, with the Nifty Auto, Realty, and Private Bank gaining the most.
Around 9.10 am on Tuesday, 24 equities on the 30-share Sensex increased, five sank, and one remained neutral, increasing the Sensex by more than 200 points earlier in the pre-opening session.
Speaking about current market trends, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, claimed that China’s unexpected rate cut at a time when the rest of the world is raising rates is a sign of the country’s abrupt growth slowdown, which has been brought on by widespread Covid lockdowns and problems with the real estate market.
“With other BRICS economies like Brazil and South Africa struggling and Russia expected to contract by 9% this year, India stands out with an expected growth rate of 7.2% in FY 23,” he said.
The analyst predicted that the markets would do well given the sustained decline in CPI inflation (6.7% in July), the drop in Brent crude to $94 and the steady purchase by FIIs. “High valuations, however, raise questions. While remaining involved, investors must take care riding this surge,” the analyst added.
Earlier on Tuesday morning, the Singaporean exchange’s SGX Nifty was spotted trading 60 points higher. The Hang Seng Index increased by 0.49%, the Chinese Shanghai Composite increased by 0.33%, and the Japanese Nikkei 225 all saw gains.