The Indian equity markets saw a positive opening on Tuesday after a four-day losing streak, driven by cooling inflation data that raised hopes for potential interest rate cuts. The Sensex and Nifty both opened marginally higher, with the Sensex trading up by 0.42% and the Nifty gaining 0.34% by mid-morning. The decline in inflation to a four-month low of 5.22% in December has sparked speculation that the RBI may cut interest rates in its upcoming policy meeting.
Leading the market recovery were stocks like Adani Enterprises, IndusInd Bank, NTPC, Tata Motors, and Adani Ports, which all posted gains in early trading. However, technology stocks faced selling pressure, with HCL Tech leading the losses despite strong quarterly results. Other IT majors like Tech Mahindra, Infosys, and Wipro also recorded declines.
Foreign institutional investors were net sellers, while domestic institutional investors provided support by purchasing shares. The Indian rupee’s weakness and rising crude oil prices continue to weigh on market sentiment. Technical analysts suggest potential support levels for the market, with the 22,830 – 23,000 area seen as notable support.
Market participants are now awaiting December wholesale price index (WPI) data for further direction, while monitoring global cues and corporate earnings. Overall, the market remains volatile, with various factors influencing investor sentiment. Stay tuned for more updates on the Indian equity markets.
