Mumbai— Indian benchmark indices opened higher for the fifth consecutive session on Tuesday but quickly pared early gains to trade nearly flat, with investor focus shifting to the outcome of high-stakes U.S.-China talks.
As of 9:17 a.m., the Sensex was up just 28.49 points (0.03%) at 82,473.70, while the Nifty inched up 21.15 points (0.08%) to 25,124.35.
Gains were led by technology, metals, and media stocks, while the banking sector faced mild pressure amid profit booking. Small- and mid-cap indices also saw modest gains of up to 0.5%, indicating broad-based buying across the market.
Akshay Chinchalkar, Head of Research at Axis Securities, noted that Monday’s session had extended Friday’s bullish momentum. “Technically, the breakout pattern—whether a pennant or rectangle—suggests a bullish target of 25,800 for the Nifty. As long as the index holds above 24,800, the bulls maintain the upper hand,” he said. He added that the conclusion of ongoing U.S.-China trade talks could serve as the next major market trigger.
Vikram Kasat, Head of Advisory at PL Capital, said efforts to ease U.S.-China tensions were encouraging, though a comprehensive resolution may take time. “Investors are also watching for signs of progress in trade relations with other global partners,” he added.
Analysts also cautioned that after the recent market rally, some profit booking may be warranted, especially given stretched valuations and the potential for unexpected geopolitical or macroeconomic developments.
Global cues remained supportive. The S&P 500 closed slightly higher on Monday, buoyed by gains in Amazon and Alphabet, while Asian markets traded in positive territory on optimism surrounding the U.S.-China discussions.
Foreign institutional investors (FIIs) remained net buyers for a second consecutive session, purchasing equities worth ₹1,992 crore on Monday. Domestic institutional investors (DIIs) continued their buying streak for the 15th straight day, with net purchases totaling ₹3,503 crore. (Source: IANS)
