Sensex Gains 0.09% as Crude Cools and US Yields Fall
Indian benchmark indices opened higher on Tuesday, supported by lower US Treasury yields and easing oil prices, though IT stocks lagged.
Key points
- Sensex gained 0.09% to 74,927.04, supported by falling US Treasury yields and positive Asian market cues.
- HDFC Bank led gains at 1.12%, while IT stocks lagged with HCLTech down 1.98% and the Nifty IT index falling 1.06%.
- Small-cap indices outperformed, with the Nifty Smallcap 100 rising 0.46% as India VIX dropped 2.08% to 11.01.
The Sensex rose 68.05 points to 74,927.04 in early Tuesday trade. This 0.09% gain reflects improved sentiment from falling US yields. The Nifty 50 followed suit, climbing 31 points to 23,445.30.
Investors reacted positively to global cues and cooling crude oil prices. The MSCI Asia-Pacific index rose 1.5%, aiding risk appetite. India Today reports that diplomatic hopes between the US and Iran also boosted confidence.
Global cues support Indian equities
The Nasdaq closed at a record high overnight. Asian markets gained in morning trade, supporting the broader rally. The US 10-year Treasury yield fell on Monday, helping equities.
Brent crude traded at $101.26 per barrel, up 0.92%. WTI crude stood at $92.99, rising 0.67%. Oil prices had fallen for four consecutive sessions before this move.
Financials lead while IT lags
HDFC Bank gained 1.12% to Rs 748.30, leading the Sensex pack. Eternal rose 0.94%, and Adani Ports climbed 0.88%. These gains indicate a shift toward large-cap value stocks.
IT stocks dragged the market lower despite the broad rally. HCLTech fell 1.98%, and Infosys declined 1.04%. The Nifty IT index dropped 1.06% at 9:40 am.
Broad market breadth strengthens
Small-cap stocks outperformed the benchmark indices significantly. The Nifty Smallcap 100 rose 0.46%, the strongest among broad-market groups. Midcap indices also gained, with the Nifty Midcap 50 up 0.27%.
Volatility expectations decreased as India VIX fell 2.08% to 11.01. Financial services and realty sectors advanced by 0.46% and 0.64%, respectively. This breadth suggests a more stable market foundation.
