Upside is capped as investors may indulge in profit booking after biggest single-day gains in six weeks seen on Sensex on Monday; downside to be capped by strong global cues and RIL's Q4 performance.
The BSE Sensex and National Stock Exchange Nifty opened in the green on Tuesday tracking a strong performance in the global markets.
The 30-share Sensex was trading at 29,808.57, up 152.73 or 0.52% from previous close in early trade, while the 50-share NSE Nifty was trading at 9263.25, up 45.30 up 0.49% soon after opening. On Monday, the BSE Sensex closed up 290 points at 29,655.84.
The 30-share Sensex is just about 210 points from its all-time high of 30,024.74 hit on March 4, 2015 while the NSE Nifty hit a fresh all-time high of 9,280 on Tuesday.
AT A GLANCE
BSE Sensex opened at 29,825.14 on Tuesday from its previous close of 29,655.84, which is up 169.3 points.
It hit an intraday high of 29,841.39 which is only 183.35 points away from the all-time high of 30,024.74 that Sensex hit on March 4, 2015.
At the intraday high, it is only 2.77 points away from the previous all-time high the Sensex had reached at 29,844.16 on January 30, 2015.
Nifty hit a fresh all-time high of 9,280 on Tuesday but quickly retreated.
Its previous all time high was 9,218, hit on March 17 which broke the previous record made just a day earlier (March 16, 2015) at 9,158.
On Tuesday, the upside may be capped as investors may cash into the biggest single-day gains in six weeks posted by the Indian markets on Tuesday. The downside will be limited thanks to strong global markets and Reliance Industries' Q4 performance.
The domestic markets tracked Asian gains which "advanced on Tuesday as the return of risk appetite following a centrist victory in the first round of the French presidential election listed several regional markets to multi-year highs, while the Euro retained most of its overnight gains," a early morning Reuters report said.
"MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.35% to its highest level in more than three weeks, marking four straight days of gains. Japan's Nikkei added 0.8%. South Korea's KOSPI advanced 0.4% to the highest level since April 2015 after SK Hynix, the second-largest company on the index, reported a record first-quarter profit. Chinese shares rose 0.1%, while Hong Kong's Hang Seng gained 0.9%," the report added.
On Tuesday, "Indian markets posted their biggest single-day gain in nearly six weeks as investor appetite got a boost after centrist Emmanuel Macron leaped ahead of far-right leader Marine Le Pen in the first round of the French presidential election," the market outlook report from Angel Broking said. Investors may cash in on the gains from Monday. Investors are expected to book profits.
However, the downside will be limited by the performance of Reliance Industries which posted a Q4 consolidated net profit growth of 12.3% to Rs 8,064 crore. Its turnover was up 45.2% to Rs 92,889 crore and its gross refining margin (GRM) was at $11.5 per barrel compared to $10.8 in the previous quarter. RIL posted its results after market closing hours on Monday. The stock had closed at Rs 1,416.40 apiece.
The shares of RIL were trading over 3.05% in early trade. At 0923 hours, the stock was trading at Rs 1,447.70, up Rs 31.30 or 2.21% from previous close.
On Tuesday, ICICI Prudencial Life, IDFC Bank, Indian Bank, Mahindra & Mahindra Finance, Persistent Systems, Axis Bank, Wipro, Welspun India, are among the major companies that are scheduled to announce their results.
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