Stock Market Update: Nifty above 21,700, Sensex up 500 points

Stock Market Update Today: Equity benchmark indices opened on a positive note on Tuesday due to strong buying in healthcare and IT sector stocks.

The 30-share BSE Sensex rose 561.13 points or 0.79 per cent to 71,984.78 in early trade. Nifty rose 160.45 points or 0.74 per cent to 21,732.25.

Also read: India overtakes Hong Kong, becomes the fourth largest stock market globally

Bharti Airtel, Sun Pharma, ICICI Bank, PowerGrid and TCS were the major gainers among Sensex companies.

In contrast, Asian Paints, HDFC Bank, Hindustan Unilever and Maruti were among the losers.

In the morning, BSE Midcap index was down 0.68 per cent while Small Cap was down 0.83 per cent.

20 scrips of the 30-share benchmark were trading in the green, while 28 constituents of the broader Nifty were trading with gains.

In Asia, Japan’s Nikkei 225 and Hong Kong’s Hang Seng were trading in the green and China’s Shanghai Composite was in the negative.

European markets closed broadly higher on Friday, with Germany’s DAX up 0.77 percent and France’s CAC 40 up 0.56 percent.

London’s FTSE 100 also rose 0.35 percent.

On Saturday, the 30-share BSE Sensex closed 259.58 points or 0.36 per cent lower at 71,423.65. Nifty closed at 21,571.80, down 50.60 points or 0.23 per cent.

Global oil benchmark Brent crude slipped 0.03 percent to US$80.04 per barrel.

According to exchange data, foreign institutional investors (FIIs) sold equities worth Rs 545.58 crore on Saturday.

Trends will dominate the market this week

Quarterly earnings, global trends and trading activity from foreign investors will drive stock markets this holiday week.

Stock markets will also remain closed on Friday on the occasion of Republic Day.

“Expectations over the upcoming Budget may drive stock and sector-specific movements. Globally, the focus will be on Japan’s monetary policy and US economic data, along with a continued eye on geopolitical developments,” said Santosh Meena, head of research at Swastika Investmart Ltd.

Meena said, last week the market witnessed continued volatility, with Nifty and Sensex ending with heavy losses of over 1 per cent each, which was further compounded by the notable underperformance of Bank Nifty, mainly due to HDFC Bank post-earnings. There was a significant decline in the shares.

He said aggressive selling by foreign institutional investors (FIIs) after HDFC Bank’s results added further pressure on the overall market.

The trading pattern of global oil benchmark Brent crude and the rupee-dollar trend will also impact trading in the markets.