Mumbai – Indian equity markets opened on a cautious note Tuesday but managed to hold ground in early trade, supported by cooling inflation and selective buying across sectors. The benchmark Sensex dipped slightly by 0.02% at the opening bell, hovering near 82,233, while the Nifty 50 rose marginally by 0.03% to around 25,089.
As the session progressed, investor sentiment turned mildly positive, with the Sensex gaining over 150 points and the Nifty reclaiming the 25,100 mark. The market found support from favorable domestic cues, especially the latest retail inflation data, which showed a sharp decline to a six-year low.
Mixed Sector Performance and Stock-Specific Moves
While nine out of thirteen key sectoral indices traded in the green, gains were partially offset by a sharp decline in HCL Technologies, which fell nearly 2%. The IT major faced selling pressure following the release of its quarterly results, which revealed margin compression despite a strong revenue beat.
Auto, banking, and consumer goods stocks were among the top gainers, buoyed by optimism that a low-inflation environment could pave the way for more stable demand and potential monetary policy support.
Global Tensions Weigh on GIFT Nifty
In the global context, caution prevailed amid concerns over trade tensions between the U.S., the European Union, and Mexico. GIFT Nifty futures were down around five points in early trade, reflecting some hesitation among foreign investors.
Asian markets traded mixed, offering limited cues, while Wall Street had a muted overnight session. Traders in India remained focused on domestic fundamentals and corporate earnings.
Market Outlook
Analysts expect a phase of consolidation in the near term as markets digest recent macroeconomic data and await further signals from Q1 earnings season. While inflation relief has improved sentiment, geopolitical and trade-related risks could limit sharp upside in the immediate term.
Investors are advised to watch for stock-specific action and upcoming policy updates as key factors influencing market direction in the coming days.
