CHENNAI: Indian equity benchmarks opened higher on Tuesday, supported by strong quarterly earnings from private banks and positive global cues. The Nifty 50, despite giving up some early gains, continued to trade in the green and was hovering near the 25,150 mark. The Sensex also advanced, up by around 150 points in early trade.
Broader markets showed strength, with small-cap and mid-cap indices gaining 0.4% and 0.3%, respectively. Eleven out of thirteen sectoral indices on the NSE were in positive territory, led by banking, auto, and consumer stocks. GIFT Nifty futures were up 56 to 100 points, indicating a strong start.
Key drivers for todays positive momentum were strong earnings, firm global cues, earnings heavy days ahead.
Positive Q1 results from HDFC Bank and ICICI Bank helped lift banking stocks, providing key support to the market.
Asian markets opened mostly higher following a positive close on Wall Street. Investors also remained optimistic about progress in India-US trade negotiations ahead of the August 1 deadline.
The market is now focused on more corporate results due this week, including from Colgate-Palmolive India and United Breweries.
Although Foreign institutional investors (FIIs) were net sellers of approximately ₹1,700 crore in the previous trading session, domestic institutional investors (DIIs) bought ₹3,600 crore worth of equities.
Stock in focus today
Shares of Zomato parent Eternal Ltd surged 10% in early trade, hitting the upper circuit at ₹298.30. The stock gained traction after the company reported over 70% year-on-year growth in Q1 revenue to ₹7,167 crore. However, net profit dropped sharply to ₹25 crore due to increased investments in the Blinkit business. Notably, Blinkit's net order value exceeded that of Zomato's core food delivery business for the first time, signaling a shift in business dynamics.
Financial stocks, which led sectoral gains, are also rising around 0.5%.
But, oil & gas stocks remained under pressure amid subdued performance by Reliance Industries.
Outlook:
The overall sentiment remains cautiously optimistic, supported by earnings momentum and global cues. Markets will continue to track Q1 earnings, FII/DII flows, and macro developments including trade negotiations with the US.
Analysts say investors to monitor earnings announcements and sectoral trends closely, as well as any updates on international trade and geopolitical developments.