Benchmark stock market indices started cautiously on Tuesday as investors took profits after recent gains. Focus was on banking stocks amid reports of a potential increase in the foreign investment cap in public sector banks to 49%. By 9:18 am, the S&P BSE Sensex was up 66.76 points at 84,845.60, and the NSE Nifty50 rose 14.25 points to 25,980.30.
Broader market indices also saw a slight uptick, but volatility rose, indicating a possibly turbulent trading session ahead. Top gainers on the Nifty50 included SBI, Tata Steel, Bharti Airtel, Titan, and L&T, while notable losers were IndiGo, ICICI Bank, Bajaj Finance, Ultratech Cement, and ONGC.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, expressed optimism, citing positive market sentiment. He highlighted the potential impact of a breakthrough in the upcoming Trump-Xi meeting on global markets, particularly on the S&P 500, Nikkei, and Kospi, already at peak levels. Anticipation of a US Federal Reserve rate cut and moderate US inflation also underpinned global equities.
Vijayakumar emphasized the fundamental support for the Indian market from GDP growth and corporate earnings, cautioning against high valuations that might lead foreign investors to cash out if the rally persists. Anand James, Chief Market Strategist at Geojit Financial Services, noted the Nifty’s upward trend, emphasizing the importance of breaching the 25,940–26,000 level for further upside momentum.
With attention on PSU bank stocks and global developments, traders anticipated limited but range-bound movements during the session.