Sensex jumped over 250 points in early trade on Tuesday, tracking gains in index-heavyweights HDFC twins, Reliance Industries and SBI amid a mixed trend in other Asian markets.
The 30-share BSE index was trading 271.72 points or 0.52 percent higher at 52,209.16 in initial deals, and the broader NSE Nifty rose 69.70 points or 0.45 per cent to 15,652.50.
Bajaj Auto was the top gainer in the Sensex pack, rising more than 2 per cent, followed by SBI, HDFC, Bajaj Finance, L&T, Reliance Industries and IndusInd Bank.
On the other hand, Infosys, TCS, Nestle India, Dr Reddy’s were among the laggards.
At 09:16 IST, the Sensex was up 93.36 points or 0.18 percent at 52030.80, and the Nifty was up 26.40 points or 0.17 percent at 15609.20.
At 09:03 IST, the Sensex was up 138.30 points or 0.27 percent at 52075.74, and the Nifty was up 32.70 points or 0.21 percent at 15615.50.
In the previous session, Sensex ended 514.56 points or 1 percent higher at 51,937.44, and the broader NSE Nifty surged 147.15 points or 0.95 percent to its fresh closing record of 15,582.80.
The Nifty closed well above 15,500 levels in yesterday's session wherein there was highest OI on the call front. Now, 15,500 will act as a crucial support level in the short term in a closing basis and 15,700 will be the immediate target, said Jay Thakkar - VP and Head of Equity Research at Marwadi Shares and Finance Ltd.
The BankNifty had closed well above 35,000 levels last week and yesterday it has managed to close above 35,500 levels now which is quite positive and it seems from hereon its inching towards 36000 levels and thereafter 36400 levels. Most of the private sector banks have provided an upward breakout which will help the Nifty Bank to inch higher.
Foreign institutional investors (FIIs) were net buyers in the capital market as they bought shares worth 2,412.39 crore on Monday, as per provisional exchange data.
"The ongoing bull run in the market has taken even the incorrigible optimists by surprise. FIIs, regarded as smart investors, have been caught on the wrong foot," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Their sustained selling from early April to mid-May has proved to be a wrong strategy and, therefore, now they are making amends through heavy purchases. Massive FII buying in the cash market is an indication of the likely direction of this market, he added.
Bulls are expected to sustain their momentum in Indian equity markets looking at better than expected GDP numbers, drop in daily fresh cases of covid and increasing buying interest of FIIs. Nifty 50 made a strong bullish candle yesterday after an initial dip in early trade, eventually managing to close 147 points higher at 15,582.80, said Mohit Nigam, Head-PMS, Hem Securities.
The SGX Nifty also indicate a positive opening with moderate gains. 15,430 shall act as nearest support levels while 15,300 shall act as next support. Nifty 50 needs to remain above 15,500 to continue with its upside journey, Nigam added.
Quarterly results today
BSE-listed companies such as ITC, Balrampur Chini Mills, Gujarat Gas, Radico Khaitan, Aris International, Divyashakti Granites, Salasar Techno Engineering, Sungold Media and Entertainment, Solitaire Machine Tools, TV Vision, and VR Woodart, among others, are scheduled to release Jan-Mar quarter earnings on June 1
Fiscal deficit at 9.3%
The fiscal deficit stood at 9.3 percent of the Gross Domestic Product (GDP) in the last fiscal, better than 9.5 percent projected in the revised estimates in the Union Budget in February.
Economic activities were severely hit in the last financial year due to the coronavirus pandemic as well as subsequent lockdowns and restrictions to curb the spread of infections.
Releasing the revenue-expenditure data of the Union government for 2020-21, the Controller General of Accounts (CGA) on Monday said the revenue deficit at the end of the last fiscal was 7.42 percent.
In absolute terms, the fiscal deficit works out to be Rs 18,21,461 crore (provisional).
As per the CGA data for fiscal 2020-21, the tax revenue collection was 105.9 per cent of the Revised Estimates (RE) presented in the budget.
Asian stocks steady
Asian stocks were trading on a steady note as traders await data of manufacturing activity and American jobs later in the week to help assess the economic outlook. Metals could show some strength in today's trading session after showing positive trend reversal yesterday when Iron ore prices in Singapore went up by around 5 percent post-China announced positive data on its steel industry. Indian markets will also keep a track on PMI Manufacturing data due to be posted today, Nigam said.
Bourses in Hong Kong and Seoul were trading in the positive territory in mid-session deals, while Shanghai and Tokyo were in the red.
Equities on Wall Street closed higher in the overnight session.
International oil benchmark Brent crude was trading 1.20 percent higher at $70.15 per barrel.