Sensex tops 58700 while Nifty surges over 80 points in early trade

The Sensex rose more than 250 points in early trade on Tuesday, tracking advances in index heavyweights Infosys, HUL, and TCS amid continued foreign capital inflows.

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The 30-share Sensex was up 264.5 points, or 0.45 percent, at 58,755.43. Similarly, the Nifty rose 80.85 points, or 0.46 percent, to 17,477.75 in early trade.

HCL Tech led the Sensex pack with a rise of more than 2%, followed by HUL, Infosys, Asian Paints, Tata Steel, and ITC.

Maruti, Nestle India, Sun Pharma, Bajaj Finserv, and Bajaj Auto, on the other hand, were among the losers.

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In the previous session, the 30-share index fell 524.96 points, or 0.89 percent, to 58,490.93, while the Nifty fell 188.25 points, or 1.07 percent, to 17,396.90.

According to provisional exchange statistics, foreign institutional investors (FIIs) were net purchasers in the capital market on Monday, purchasing shares worth Rs 92.54 crore.

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“Domestic equities look to be soft as cascading impact of Evergrande defaults may turn investors risk-averse in the near to medium term,” said Binod Modi Head-Strategy at Reliance Securities.

However, given the rising risk of earnings downgrades in US markets as a result of the steep increase in coronavirus daily caseload, the Indian government’s continuing reform initiatives appear to have rekindled FIIs’ interest in the local market, he added.

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On the global front, shares were under severe selling pressure on Monday as investors worried about the probable default of China’s second-largest real estate firm, Evergrande. In the United States, all three indexes fell by around 2%.

Furthermore, investors have been wary ahead of the conclusion of the Federal Open Market Committee (FOMC) meeting on Wednesday, with many investors expecting harsh comments from the US Federal Reserve, according to Modi.

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Elsewhere in Asia, the Hang Seng and Nikkei were down. China’s and Tokyo’s stock exchanges remained closed.

Meanwhile, Brent crude, the worldwide oil benchmark, climbed 0.91 percent to USD 74.59 per barrel.

Rupee surges 15 paise to 73.59 against the US dollar in early trade.