Indian stock markets increased in early trade on Tuesday, lifted by consistent buying interest in metal, automobile, and public sector banking stocks. However, the upside remained capped amid caution ahead of the expiry of December derivative contracts this week.
The benchmark BSE Sensex climbed 94 points to hit 71,201 levels in morning deals. The broader NSE Nifty50 index also added 55 points to trade at 21,405.
Gains were broad-based with NTPC, PowerGrid, Tata Steel, Mahindra & Mahindra (M&M), Larsen & Toubro (L&T), and ITC trading as the top index gainers. The Nifty Metal index surged nearly 1% as investors snapped up metal counters following China’s reopening cues.
Top carmakers like Maruti Suzuki, M&M, and Tata Motors drove the Nifty Auto index 0.8% higher on renewed hopes of a demand revival. State-run banking stocks like SBI, PNB, and BoB attracted buying interest after the government infused Rs 6,000 crore capital into six public sector lenders.
However, software exporters remained under pressure for the second straight day, dragging Nifty IT index 1% down. Infosys shares plunged 2% to emerge as the biggest Sensex loser after reports stated that global major Daimler AG has decided to cancel the IT transformation projects contract it had awarded to Infosys. This development may dent Infosys’ future growth prospects.
Besides Infosys, other technology names like Wipro, HCL Tech, Tech Mahindra, and TCS also traded lower, capping the markets’ upside. Still, overall market breadth remained positive amid the ongoing holiday season, hinting at some year-end buying by investors.
Traders will keep an eye on the monthly F&O expiry for cues. Key levels to track would be Nifty’s psychological 22,000 mark on the upside and 21,200 on the lower end.
