Markets opened nearly flat Tuesday morning, with the Sensex opening at 80,396.92, up from the previous close of 80,218.37, and is currently trading at 80,224.17, up 5.80 points or 0.01 per cent. The Nifty, however, is slightly down by 10.65 points or 0.04 per cent at 24,317.85 after opening at 24,370.70, compared to its previous close of 24,328.50, as investors assessed sector-specific developments amid ongoing foreign institutional buying.
The Reserve Bank of India’s announcement of fresh open market operations (OMOs) worth ₹1.25 lakh crore to enhance liquidity in the banking system has become a significant focus for market participants. This move is expected to particularly benefit banking and NBFC sectors following strong quarterly performances.
“The RBI’s liquidity push through OMOs will provide much-needed support to the banking system and should continue the rally in banking stocks. This comes at a time when we’re already seeing strong quarterly results and growing expectations of potential interest rate cuts,” said Vikas Jain, Head of Research at Reliance Securities.
Foreign institutional investors (FIIs) have maintained their buying streak for nine consecutive trading sessions, with net purchases totalling approximately ₹35,000 crore. For April, they have shifted to a net positive buying position, providing crucial support to the market rally.
Defence stocks are showing positive momentum following news of India and France finalising a ₹63,000 crore deal for 26 Rafale Marine fighter jets. Bharat Electronics Limited (BEL) emerged as the top gainer on NSE, rising 2.16 per cent to ₹311.65 in early trade.
Other notable gainers include Trent (+1.29 per cent), Tata Motors (+1.23 per cent), SBI Life (+1.04 per cent), and Bharti Airtel (+0.99 per cent). On the losing side, Sun Pharma led with a 1.66 per cent decline, followed by Dr. Reddy’s (-1.61 per cent), UltraTech Cement (-1.56 per cent), Shriram Finance (-1.41 per cent), and Nestle India (-1.41 per cent).
The market is closely monitoring quarterly results from several companies. “TVS Motor, KFIN Tech, and Oberoi Realty announced better than expected Q4 results, while UltraTech reported in line with expectations,” noted Jain.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, highlighted the market’s resilience despite geopolitical concerns. “The Sensex did a Vaibhav Suryavanshi yesterday with a 1,005 point spectacular rally amidst the heightened tensions in the border… The strong pillar of support for the market now is the sustained FII buying.”
Positive sentiment is further fuelled by remarks from US Treasury Secretary Scott Bessent indicating that India could be among the first countries to finalise a trade deal with the United States. “Should India successfully negotiate favourable terms, such a development would likely strengthen market confidence and stimulate positive investor sentiment,” stated Devarsh Vakil, Head of Prime Research at HDFC Securities.
On the commodity front, gold advanced 1 per cent to $3,345 as the dollar and bond yields reached one-month lows, while Brent crude settled lower by 2 per cent to $65 per barrel amid concerns about potential OPEC+ output increases and uncertainty in US-China trade relations.
Technically, analysts suggest the Nifty has key support at 24,250-24,000 and resistance at 24,500-24,700. “If the market drops below 24,100/79,500, the uptrend will weaken, whereas crossing and closing above 24,450/80,600 would result in quick expansion to 24,700 or 24,900 in the near term,” said Shrikant Chouhan, Head Equity Research at Kotak Securities.
Market participants are now awaiting several key economic catalysts, including US GDP data and inflation figures, along with earnings reports from major technology companies including Amazon, Meta, Microsoft, and Apple scheduled for release tomorrow.
Published on April 29, 2025
