Stock market to open stronger amid positive global market sentiment, Gift Nifty surges

Stock Market pre-opening: The stock market is set to open higher on Tuesday, aligning with a global stock market surge fueled by growing expectations of interest rate cuts by major central banks worldwide.

The Gift Nifty GIFc1 stood at 22,590 as of 8:01 am, indicating a slight uptick for the Nifty 50 from Monday's closing level of 22,442.70.

Asian markets reached 15-month highs on Tuesday, buoyed by the European Central Bank's growing confidence in rate cuts and the US Federal Reserve's indication of potential future rate reductions.

However, despite the overall positive sentiment, the stocks are navigating heightened volatility, which hit a 15-month peak on Monday. Analysts anticipate continued volatility amid ongoing national elections and the ongoing earnings season.

Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, noted, "The notable surge in the volatility index is impacting sentiment, possibly exerting pressure on the rising Nifty."

In Monday's trading, the Nifty 50 closed lower, while the BSE Sensex ended the session with marginal changes.

Foreign portfolio investors divested Indian shares worth 21.69 billion rupees (approximately $260 million) on a net basis on Monday, while domestic institutional investors netted purchases of 7.81 billion rupees in stocks.

Key stocks to monitor include

Reliance: The oil refiner reportedly resubmitted a request for a US licence to import Venezuelan oil, according to sources familiar with the matter.

Godrej Consumer Products: The company reported an increase in fourth-quarter adjusted profit driven by higher demand for its home and personal care products.

Lupin: The drugmaker fell short of quarterly profit estimates due to elevated costs, despite robust demand in North America and Indian markets.