Nifty, Sensex open higher as global risk sentiment improves

Stock market news: Indian benchmarks opened higher on Tuesday, buoyed by a resurgence in global markets as risk sentiment improved, particularly led by gains in information technology stocks.

As of 9:25 am, the NSE Nifty 50 surged by 0.28 per cent to 22,399.25, while the S&P BSE Sensex rose by 0.30 per cent to 73,863.43.

The positive momentum was echoed across Asian markets which opened on a high note, while U.S. equities closed up overnight, bolstering investor confidence and leading to a drop in gold prices.

Twelve out of the 13 major sectors saw gains, with heavyweight IT stocks marking a notable increase of 0.5 per cent.

Furthermore, small and mid-cap stocks, which are more domestically focused, also experienced a boost with both segments rising about 0.6 per cent each at the market open.

This surge in Indian shares comes amidst a backdrop of a rebound in global markets, with investors dialing back on safe-haven assets, contributing to a favourable trading environment.

Focus on key players

One of the significant players in focus is Reliance Industries, following the conglomerate's beat of fourth-quarter profit estimates. The company's shares are anticipated to garner attention after reporting robust performance.

Additionally, Adani Group shares are under scrutiny after reports emerged that India's markets regulator has identified a dozen offshore funds invested in Adani Group companies, which were found to be in violation of disclosure rules and investment limits.

Foreign portfolio investors (FPI) offloaded Indian shares worth Rs 2,915 crore (about $350 million) on a net basis on Monday. Conversely, domestic institutional investors (DIIs) displayed an opposite trend, buying stocks worth Rs 3,543 crore.

For the month of April, FPIs, initially net buyers, have now turned net sellers, shedding 44.81 billion rupees of stocks, according to National Securities Depository data.

Stocks to watch:

Among the key earnings announcements expected today are from Tata Consumer Products, ICICI Prudential Life Insurance, and Tata Elxsi.

Other notable developments include Tejas Networks reporting a consolidated profit after tax of Rs 147 crore in the March quarter, compared to a loss of Rs 11.47 crore year-on-year.

Mahindra Logistics witnessed a widening of its fourth-quarter loss on subdued volume growth, while Rallis India's net loss narrowed in the March quarter, with the declaration of a dividend of Rs 2.50 per share.

(With Reuters inputs.)