The BSE Sensex was trading 76 points or 0.11% higher at 70,005, while Nifty50 was trading at 21,028, up 31 points or 0.15% at around 9.23 am.
The current rally is bolstered by strong macroeconomic data, a decline in crude oil prices, favourable global interest rate outlook, the resurgence of foreign inflows and sustained inflows from domestic mutual fund investors.
From the Sensex pack, Tata Steel, JSW Steel, M&M, ITC, and Asian Paints opened higher, while Infosys, L&T, Bharti Airtel, Titan, and NTPC opened with cuts.
Dixon Technologies shares rose over 6% after the company’s unit secured a manufacturing contract from Lenovo to make laptops and notebooks under the production-linked incentives (PLI) scheme.
Rail Vikas Nigam (RVNL) also surged 4% after the joint venture of the company emerged as the lowest bidder for a project worth Rs 543 crore.
Mankind Pharma shares fell nearly 5% amid reports of a block deal executed on the counter.Sector-wise, Nifty Media surged 2.34% and Nifty FMCG gained 0.7%. Nifty Bank and Nifty Financial Services also opened higher. In the broader market, Nifty Midcap100 gained 0.33%, while Smallcap100 rose 0.5%.
India’s retail inflation data is due at 5:30 p.m. IST.
Experts View
“The fundamental factor supporting the rally which has taken the market to record highs is the series of positive news: Q3 GDP growth rate of 7.6%, CPI inflation falling to 4.87%, Manufacturing PMI rising to 56, Brent crude declining to $76 and FPIs turning buyers aided by correction in US 10-year bond yield to 4.23%,” said V K Vijayakumar, Geojit Financial Services.
“Since these positive developments are mostly in the price, the market is likely to wait for incoming crucial data before making further moves. Therefore, the market will be keenly watching the inflation print from the US tonight and the Fed’s message on Wednesday,” Vijayakumar added.
Deepak Jasani, Head of Retail Research at HDFC Securities, said, “Nifty could stay in the 20850-21050 band for the near term.”
Global Markets
All three major Wall Street indices posted their new 2023 closing highs, overnight, ahead of key economic data and Fed monetary policy decision.
Asian shares crept higher on Tuesday. Japan’s Nikkei rose 0.24%, while China’s Shanghai Composite surged 0.1%. Hong Kong’s Hang Seng gained 1%, and Korea’s Kospi surged 0.3%.
FII/DII Tracker
Foreign institutional investors (FIIs) bought Indian shares worth Rs 1,261 crore on a net basis on Monday, while domestic institutional investors (DIIs) offloaded shares worth Rs 1,033 crore, according to provisional data from the National Stock Exchange.
US CPI report
The US Consumer Price Index (CPI) report, due on Tuesday, is expected to show a moderation in inflation, but still above the Fed’s target, analysts stated.
US CPI data is due at 7:00 p.m. IST.
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