Benchmark indexes continued to rise on Tuesday morning, supported by ongoing purchases from overseas institutional investors and indications that the US recession concerns are subsiding.
In early trading, the 30-share BSE Sensex increased 173.65 points to 61,937.90. To 18,318.75, the NSE Nifty increased 54.35 points.
The top gainers among the companies on the Sensex were Bajaj Finserv, Tata Motors, Tata Steel, Titan, UltraTech Cement, Larsen & Toubro, Bajaj Finance, Axis Bank, and HDFC.
The main laggards were State Bank of India, HCL Technologies, ITC, and Reliance Industries.
Tokyo and Shanghai were trading higher on Asian markets, while Seoul and Hong Kong were trading down.
The US stock markets had a mixed Monday night.
“The US recession concerns seem to be abating, which is the largest positive driver. The fact that Foreign Institutional Investors (FIIs) spent Rs 2,124 crore on shares while Domestic Institutional Investors (DIIs) also spent Rs 245 crore on shares would further boost sentiment, according to Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
According to exchange statistics, foreign institutional investors (FIIs) were net purchasers on Monday, purchasing shares worth Rs 2,123.76 crore.
“The market’s current advance is being driven by three key factors: first, the US economy’s stronger-than-expected performance and growing optimism that the US would escape a severe recession.
“Two, significant purchases made by FIIs over the course of the previous eight trading days. According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “three, fundamental support to the rally from macro indicators such as strong GST collections, improving PMI, high fuel consumption, and good credit growth.”
Brent crude, the benchmark for all crude oil, fell 0.42 percent to USD 76.68 a barrel.
The BSE benchmark increased 709.96 points, or 1.16 percent, to close Monday at 61,764.25 on the BSE index. The Nifty finished at 18,264.40, up 195.40 points or 1.08 percent.
