At 11:09 AM, BSE Sensex was trading at 70,776.73, up over 400 points or 0.58% in trade.Nifty50 was at 21,369.05, up 130 points or 0.61%.
In early trade, Axis Bank was the top loser in the Sensex pack, falling over 4%. Asian Paints, Bharti Airtel, HDFC Bank, and Maruti also opened with cuts, while Infosys, HCL Tech, ABI, and Tech Mahindra opened with gains, according to an ET report.
After a significant decline in the previous session, Zee Entertainment shares surged 8% higher amidst concerns about the termination of the merger deal with Sony and the subsequent legal and regulatory implications.
AU Small Finance Bank saw a 2% rise after the Competition Commission of India (CCI) approved the merger of Fincare Small Finance Bank with the Bank.
Nifty Media, Metal, Pharma, and PSU Bank sectors saw a rise of over 1%, while Auto and Realty sectors fell up to 0.8%. In the broader market, Nifty Midcap100 rose 0.86%, while Nifty Smallcap100 surged 1%.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, some news and rumors led to selling in the market. There were reports of SEBI tightening the ultimate beneficiary norms for FPIs starting February 1st, which may have triggered some FPI selling. Vijayakumar also mentioned that there is a rumor about the finance minister tweaking the LTCG tax during the Budget time.
Aditya Gaggar, Director of Progressive Shares, highlighted that the Index has formed an advanced harmonic bullish cypher pattern with a bullish divergence in RSI, suggesting a probable reversal. He stated that sustainability at higher levels will be crucial, with targets set at 21,550 & 21,770, and immediate support at 20,950.
In global markets, Asian shares rose on optimism that Chinese authorities will support its stock markets. Chinese stocks remained mixed, with the blue chip index lower and the Shanghai Composite higher. Hong Kong’s Hang Seng index saw a spike but remained down for the month.
Foreign institutional investors sold Indian shares worth Rs 3,115 crore on Tuesday, while domestic institutional investors bought shares worth Rs 214 crore.
