Mumbai (Maharashtra) [India], May 13 : Indian equities opened on a tepid note on Tuesday, following a strong rally witnessed in the previous session.
The early weakness was attributed to profit booking as the markets attempted to stabilize recent gains. However, the indices soon pared losses and turned positive, reflecting underlying investor confidence.
The benchmark indices started marginally lower, with the Nifty 50 opening at 24,864.05, down by 60.65 points or 0.24 per cent, while the BSE Sensex slipped by 180.30 points or 0.22 per cent to begin the day at 82,249.60.
According to market experts, Monday's strong rally was driven by high net-worth individuals (HNIs), while participation from foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) remained subdued. If institutional buying picks up alongside HNI interest, markets could see a broader turnaround.
Ajay Bagga Banking and Market Expert told"Indian markets surged, though the FPI and DII numbers were muted, which means that non institutional buying was the major prop for the Indian markets. This morning futures are tepid but if the buying is coming from domestic retail and domestic HNI prop desks, then it should continue".
In sectoral performance, Nifty Pharma led the gains with a rise of 1.2 per cent, while Nifty PSU Bank also traded in the green. On the other hand, most other sectoral indices were in the red, with Nifty IT declining by more than 1 per cent.
On the global front, markets were surprised by a trade deal between China and the United States that resets their economic relationship. Once again, U.S. President Donald Trump's approach of "shock, awe, negotiate and deal" was seen in action.
While there had been intense speculation and strong rhetoric since January 20, the final outcome appeared to be more subdued, changing little in terms of strategic direction but opening the door for fresh negotiations.
Akshay Chinchalkar, Head of Research, Axis Securities said "The nifty jumped 3.8 per cent yesterday, In doing so, the benchmark also confirmed a so-called bullish flip above the 200-day moving average, a signal which has proven to produce short-term positive returns. Support now sits between 24650 and 24700, while 25000 is key psychological resistance. Time-wise, 15th May +/- one trading day is an important marker.
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