In the first session, the Sensex and Nifty both gained

Mumbai: The BSE Sensex rose more than 277 points in early trade on Tuesday, reflecting overall optimism in global markets, led by record-setting US stocks.

The 30-share benchmark opened with significant gains and saw further consolidation as the trade progressed, extending its winning streak. In early trading, the Sensex was trading at 59,461.07, up 277.85 points or 0.47 percent.

Similarly, the NSE Nifty rose 80.40 points, or 0.46 percent, to 17,706.10.

The Sensex gained about 930 points in the previous session, which was also the first trading day of 2022, to end at 59,183, while the Nifty gained about 272 points to end at 17,626.

On Tuesday, Sensex’s top gainers were NTPC, PowerGrid, Axis Bank, SBI, Bajaj Finance, and RIL, which rose as much as 2.31 percent.

Shares of HCL Tech, Tech Mahindra, Wipro, and Infosys, on the other hand, were among the major laggards.

“The setting of record highs in US markets on the first trading day of 2022 is auspicious for global stock markets.” The spectacular 271-point rally in the Nifty, as well as FIIs turning buyers with net purchases totaling Rs 703 crore, are both bullish signals, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

If the FIIs’ purchases on Monday are indicative of their renewed interest in India, financials, particularly the leading banks, are likely to maintain the momentum seen in the previous session, he added.

However, the third wave of the pandemic is a source of concern, even though the market believes it will have little impact on economic activity, according to Vijayakumar.

He also stated that rising inflation is a major headwind for global markets, which may be exacerbated by the dislocations caused by the Omicron variant.

Other Asian bourses were trading higher on Tuesday, tracking record gains in US equities on the first trading day of 2022.

Meanwhile, Brent crude, the international oil benchmark, rose 0.27 percent to USD 79.19 per barrel.

According to exchange data, foreign institutional investors (FIIs) were net buyers in the capital market on Monday, purchasing shares worth Rs 575.39 crore.

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