Sensex and Nifty opened higher on Tuesday, extending their gains to a fourth consecutive session, as strong corporate earnings, easing crude oil prices and early signs of foreign investor inflows lifted sentiment.
Rising for the third straight session on Monday, the 30-share BSE Sensex jumped 1,233.25 points, or 1.66 per cent, to settle at the day’s high of 75,692.78, a level not seen since September 7. Nifty, meanwhile, ended above 23,400 on Monday after sharp gains in Reliance Industries following its earnings and cooling crude oil prices.
Brent crude traded flat at around $105 a barrel after falling seven per cent in the previous session, as talks between Iran and Qatari mediators raised hopes of an end to the US-Israeli war with Iran.
However, reports that the US had struck Iran’s Qeshm Island kept geopolitical tensions elevated.
Foreign portfolio investors turned net buyers of Indian equities on Monday, bringing in ₹31,150 crore, while domestic institutional investors sold shares worth a net ₹3,920 crore, according to provisional NSE data.
“A sustained de-escalation in geopolitical tensions and further moderation in energy prices could support the ongoing recovery,” Reuters quoted as saying Ponmudi R, CEO of brokerage Enrich Money.
“However, a breakdown in negotiations or continued weakness in global technology stocks could revive volatility.”
Among stocks, Marico was in focus after beating quarterly profit estimates, aided by lower copra costs and healthy demand.
Dr Reddy’s Laboratories said the US FDA had tentatively approved a generic version of a new and highly effective HIV prevention drug.
Granules India reported a nearly 40% rise in September-quarter profit, as new product launches and strong sales of its key medicines in major overseas markets offset higher production costs.