In early trade on Tuesday, the Sensex rose more than 600 points, mirroring advances in index mainstays ICICI Bank, Infosys, and Reliance Industries, as well as a strong trend in other Asian markets.

In the first hour of trading, the 30-share index rose 635.96 points, or 1.14%, to 56,457.97. Likewise, the Nifty rose 187.05 points, or 1.13%, to 16,801.25.

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HCL Tech led the Sensex pack with a 3%, followed by Tech Mahindra, Tata Steel, Wipro, NTPC, and Titan while Axis Bank was the sole loser.

The 30-share equity benchmark fell 1,189.73 points, or 2.90%, to close the previous session at 55,822.01, while the Nifty fell 371 points, or 2.18%, to 16,614.20.

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According to stock exchange statistics, foreign institutional investors (FIIs) continued to be net sellers in the capital market on Monday, selling shares worth Rs 3,565.36 crore.

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The negative sentiments caused by the global sell-off triggered by the explosive growth of the Omicron variant may persist in the short run. Sustained FII selling (above Rs 30,000 crore for December, so far) continues to be a major headwind for the market, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

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However, it is important to note that FIIs are booking profits rather than selling indiscriminately in India. From November 1st to 15th December FIIs sold bank stocks worth Rs 19,442 cr. They have been sitting on big profits on bank stocks, which they accumulated during 2015-20. So, profit booking makes sense, he stated.

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“FIIs are not indiscriminately selling India and will turn buyers when they see the value. Meanwhile, DIIs are spotting value and accumulating stocks in many beaten down segments,” he added.

In other Asian markets, bourses in Shanghai, Hong Kong, Tokyo, and Seoul were trading higher in mid-session trades.  In the overnight session, stock markets in the United States closed in the red.

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Meanwhile, Brent crude, the international oil standard, increased 0.80% to USD 72.09 per barrel. In early trade, the rupee climbs 17 paise to 75.73 against the US dollar.