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New Delhi: The Indian stock market was opening with a decline for several days. However, this trend stopped on Tuesday. Sensex and Nifty opened on the green mark. Due to the decline in the last several sessions, investors have got an opportunity to buy good shares at lower levels. Good buying was also seen in blue-chip stocks like Reliance Industries and Tata Consultancy Services.
In early trade, BSE Sensex rose 591.19 points to 77,930.20. While NSE’s Nifty rose by 188.5 points to reach 23,642.30 points. Till 10 am, there was a rise of 1 percent in NSE and BSE.
Reason for rise in Indian stock market
American stock markets closed with gains on Monday. Due to this, a rise was also seen in Asian markets. Especially Japan’s Nikkei index is trading with a gain of about 1 percent. This also boosted the morale of investors in India and they bought heavily.
Of the top 30 Sensex companies, 27 were trading in the green. Only Hindustan Unilever, Bajaj Finserv and ICICI Bank remained in the red. The biggest increase was seen in Mahindra & Mahindra, Tata Motors, Adani Ports and NTPC. All these shares were trading with a gain of more than 2 percent.
Rupee strengthened against dollar
The rupee also strengthened by two paise in early trade on Tuesday. The rupee performed well due to improvement in domestic equity markets and weakening of the US currency against key Asian rivals. It increased by 2 paise to 84.40 against the dollar.
However, forex traders say continued inflow of foreign funds and rising crude oil prices have put pressure on the rupee, otherwise it could have strengthened today. The price of Brent crude today increased by 0.19 percent to reach $ 73.44 per barrel. It has increased by more than 2 percent in the last five trading sessions.
Selling by foreign investors continues
According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs 1,403.40 crore on Monday. Along with this, domestic institutional investors (DIIs) bought shares worth Rs 2,330.56 crore. Since the beginning of October, foreign investors have been continuously withdrawing, which is still going on. The main reason for the selling by foreign investors is the expensiveness of the Indian stock market. Also, the valuation of markets like China is quite attractive. After the victory of Donald Trump, investors are seeing much better prospects in the American market.
Talking about other Asian markets, gains were recorded in Seoul, Tokyo and Hong Kong, while a decline was recorded in Shanghai. American stock markets closed with mixed sentiment in Monday’s session. The Nasdaq rose 0.6 percent. Elon Musk’s rise in Tesla shares played an important role in this. The S&P 500 rose 0.39 percent. A decline of 0.13 percent has been recorded in Dow Jones.