Share Markets Open Strong But Remain Volatile; Sensex Under 80,300, Nifty Tests 24,350

This rally in the markets was driven by an expectation of improvement in trade tensions with the US and continued foreign fund inflows.

Sectorally, the PSU Bank index climbed 1.68 per cent in the session.

Source : Freepik

Indian benchmark indices carried on the sentiment from the previous trading session and continued to rally ahead on Tuesday. Around 9:29 AM, the BSE Sensex jumped 350 points to cross 80,500 in the session, while the NSE Nifty50 gained 87 points to trade above 24,400.

On the 30-share Sensex platform, Tata Motors, IndusInd Bank, Reliance Industries, Axis Bank,and Bharti Airtel emerged among the gainers. Meanwhile, the laggards in the early hours of the session included Sun Pharma, Nestle, UltraTech Cement, PowerGrid, and Bajaj Finance. This rally in the markets was driven by an expectation of improvement in trade tensions with the US and continued foreign fund inflows.

In the broader markets, the indices traded entirely in green. The Nifty Smallcap50 dominated the gains and climbed 1.38 per cent in the morning.

Sectorally, the PSU Bank index climbed 1.68 per cent in the session. On the other hand, the Pharma index tanked 0.73 per cent during the initial trading hours.

However, as markets progressed, the indices pared their gains but continued to trade higher. Around 9:42 AM, the Sensex traded under 80,300, while the Nifty inched up 21 points to test 24,350 in the session.

Foreign Inflows And Trade Relations

The foreign institutional investors (FIIs) purchased Indian equities worth Rs 2,474.10 crore on Monday, according to exchange data. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, explained, "The strong pillar of support for the market now is the sustained FII buying for nine days in a row for a cumulative amount of Rs 34,940 crore. India’s potential relative outperformance compared to other large economies can support the FII inflows and impart resilience to the market."

Notably, US Treasury Secretary, Scott Bessent, said yesterday that India would be one of the first countries the US inks a trade deal with. This helped uplift sentiment in the market and indicated that trade tensions might ease soon, resulting in a boost for investors. 

In Asian markets, South Korea's Kospi and Hong Kong's Hang Seng indices traded higher, while Shanghai SSE Composite remained in the negative territory. The US markets ended trading on Monday mostly on a high note.