Sensex, Nifty open higher driven by gain in FMCG and auto stocks

New Delhi: Stock market indices started the day strong on Tuesday, following a rise in FMCG and auto company stocks, specifically Maruti Suzuki's shares increasing by more than 4 percentage. As of 10:25 AM, the S&P BSE Sensex increased by 156.15 points to 80,116.53, and the NSE Nifty50 rose by 27.15 points to 24,347.70. Maruti Suzuki saw the highest growth on the Nifty50, rising by 4.63 percentage, with ITC coming in second at 1.39 percentage, followed by Cipla at 1.34 percentage, Titan at 1.22 percentage, and Hero MotoCorp at 1.11 percentage.

The market remains strong and resistant to a significant downturn despite the elevated valuations. A positive development in the market is the increased purchasing of largecap stocks with strong fundamentals. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that the increasing accumulation and buying of largecaps such as RIL and ITC reflect a positive trend.

ONGC experienced the largest decrease with a 1.69 percentage decrease, with Dr Reddy's following at 1.30 percentage, BPCL at 0.94 percentage, Reliance at 0.65 percentage, and Apollo Hospitals at 0.59 percentage. The Nifty Midcap100 gained 0.08 percentage, whereas the Nifty Smallcap100 increased by 0.17 percentage. The volatility index increased by 2.68 percentage.

The market seems to be anticipating catalysts for a move upward from the current levels. This signal could be a result of the Q1 results beginning this week. He added that positive management commentaries from major IT companies could lead to a rise in IT stocks.

Nifty Bank increased by 0.14 percentage, Nifty Auto surged by 1.05 percentage, Nifty Financial Services saw a rise of 0.18 percentage, and Nifty FMCG rose by 0.49 percentage on the sectoral indices.         

There was a notable 0.77 percentage increase in Nifty Media, and Nifty Metal saw a small 0.07 percentage rise. There was an increase of 0.20 percentage in Nifty Pharma, a rise of 0.93 percentage in Nifty PSU Bank, and a slight growth of 0.06 percentage in Nifty Private Bank. Conversely, Nifty IT experienced a decrease of 0.26 percentage. Gains were recorded in eight out of the 13 major sectors.

Another possible reason for a breakout could be the Budget that will be revealed on the 23rd of this month. Because the economy is in a favorable position, the finance minister can provide tax relief to the middle class and work towards fiscal consolidation. Vijayakumar said that if the current approach to taxing capital gains remains unchanged, the market will probably respond positively to the Budget.

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