Indian Equity Market Starts Steady, PSU Bank Stocks Surge

Mumbai, Dec 3 (NationPress) The Indian equity market commenced almost steady on Tuesday as investors showed interest in the PSU bank sector during the initial trades.

At approximately 9:46 am, the Sensex was positioned at 80,349.11, having increased by 101.03 points or 0.13 percent. Meanwhile, the Nifty was at 24,302.85, up by 26.80 points or 0.11 percent.

The overall market sentiment remained optimistic. On the National Stock Exchange (NSE), 1,864 stocks were in the green, while 421 stocks were in the red.

Market analysts noted that the market's underlying strength is clear from its ability to recover. The focus is shifting from concerns about GDP growth slowdown to the anticipated policy measures in response to this slowdown.

According to them, the rebound in banking stocks observed yesterday suggests that the market is anticipating a CRR cut on Friday, which would enhance the banks' profitability.

The Nifty Bank index climbed by 337.30 points or 0.65 percent to 52,446.30. The Nifty Midcap 100 index was trading at 57,353.65, up by 352.80 points or 0.62 percent. The Nifty Smallcap 100 index stood at 19,019.30, having gained 174.25 points or 0.92 percent.

Akshay Chinchalkar, Head of Research at Axis Securities, stated, “The Nifty has risen for the second consecutive day and is approaching a level that may confirm a potential head-and-shoulders bottom. The crucial level to monitor today is 24315, and a close above this threshold will activate the pattern with a smaller upside target near 24,800 followed by a larger target around 25,500.

“Any decline that takes the market below 23,873 after pattern confirmation will necessitate a review of this bullish outlook. Meanwhile, the 24360 - 24540 range remains significant,” he added.

Within the Sensex constituents, Adani Ports, SBI, HDFC Bank, JSW Steel, IndusInd Bank, Tata Steel, and Bajaj Finance were the top performers. In contrast, ITC, Bharti Airtel, Sun Pharma, M&M, and Kotak Mahindra Bank experienced declines.

In Asian markets, stocks in Seoul, Japan, China, Hong Kong, Bangkok, and Jakarta were trading higher. In the U.S. stock markets, the S&P 500 and Nasdaq Composite rose by 0.24 percent and 0.97 percent, respectively, while the Dow Jones Industrial Average closed down by 0.29 percent from the prior trading session.

Foreign institutional investors (FIIs) sold stocks worth Rs 238 crore on December 2, while domestic institutional investors purchased equities worth Rs 3,588 crore on the same day.