Indian Stock Market Opens Strong

Indian equity benchmark indices, BSE Sensex and Nifty50, opened in green on Tuesday, signaling a robust start to the trading day. The BSE Sensex surged over 350 points, while the Nifty50 climbed above 23,750, showcasing the market's resilience amidst global uncertainties.

At 9:16 AM, the BSE Sensex was trading at 78,321.56, marking an increase of 357 points or 0.46%. Similarly, the Nifty50 stood at 23,761.20, up by 145 points or 0.61%. This upward trend comes despite the significant selling pressure experienced by Indian equity markets on Monday, attributed to concerns over the HMP Virus outbreak and underwhelming quarterly updates from banking stocks.

Market Volatility and Technical Analysis

Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal, commented on the market's volatility, stating, "We expect markets to remain volatile until concerns relating to the new virus ease out. We could see stock/sector specific action on the back of pre-quarterly business updates and the start of the Q3 result season."

Technical analysis indicates a short-term weakness in Nifty trends, with support levels near 23,460 and 23,260. Resistance is anticipated around the 23,800 mark.

Global Market Influence

Major US stock indices reached their highest levels in over a week, buoyed by strong performances in semiconductor shares. This rally was further supported by reports suggesting a potential moderation in the incoming Trump administration's approach towards tariffs.

Asian markets also showed strength, following Wall Street's tech-driven rally. Gains were observed in Japanese, South Korean, and Australian markets, while Hong Kong futures suggested a softer opening. Notably, Nvidia achieved new highs ahead of CEO Jensen Huang's speech.

The US dollar hovered near its one-week low against major currencies as investors assessed possible changes in President-elect Donald Trump's tariff policies.

Investment Trends

Foreign portfolio investors recorded net sales of Rs 2,575 crore on Monday, while domestic institutional investors purchased shares valued at Rs 5,749 crore. The net short position of foreign institutional investors decreased to Rs 2.22 lakh crore from Rs 2.29 lakh crore on Friday.