Sensex jumps over 100 pts, Nifty above 24,650; metal, pharma stocks rally
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The S&P BSE Sensex gained 178 points or 0.2%, to open at 80,542, while the NSE Nifty 50 was up 57 points, or 0.2%, opening at 24,692.
On the 30-stock Sensex, shares of Power Grid, Asian Paints, Titan Company, UltraTech Cement, and HDFC Bank led the gains, rallying up to 2% in the opening trade. On the flipside, Reliance Industries, ITC, Eternal, Trent, and L&T declined up to 0.3%.
Sectorally, the Nifty PSU Bank index led the surge, up over 1% led by Canara Bank, Bank of Baroda, and PNB. Metal stocks also powered ahead, up for a second session in a row after a sharp surge in Vedanta, Hindalco, and JSW Steel.
The broader market, represented by the Nifty Midcap and Smallcap 100 indices, was little changed.
Markets have been in a bearish run after U.S. President Donald Trump unveiled a new wave of tariffs, slapping 100% duties on branded and patented drugs and 25% tariffs on heavy-duty trucks, effective October 1. Furthermore, relentless FII selling amid lofty valuations has significantly dampened sentiment on the bourses.
ETMarkets.comTop gainers in early trade.
Expert views
"The near-term market structure appears weak. Sustained FII selling and the absence of positive triggers are preventing any strong recovery in the market. Any attempt to climb up is facing selling pressure. This is evident from the negative closing yesterday despite the positive institutional inflow of above Rs 1,000 crore,” V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, said.“Long-term investors can use this drift in the market to accumulate the potential winners of the medium to long term. Priority can be given to segments which are seeing good demand and order inflows. Defence stocks are fairly valued given their robust order pipeline. High-quality financials are attractively valued. PSU banks are cheap,” he added.
In technical terms, Bajaj Broking said Nifty has formed a significant bearish candle with an upper shadow, indicating that bulls failed to sustain the earlier rebound. This price action reflects selling pressure at higher levels and suggests a continuation of near-term weakness in the sessions ahead. The lower wick shows some tentative buying, but overall momentum remains tilted toward the downside.
Nifty is now approaching a critical confluence support zone in the 24,500–24,400 range, marked by previous swing lows and the 200-day moving average. This area is likely to act as a strong demand zone, where short-term buyers may step in, providing a potential base for stabilisation. Traders should watch this zone closely for signs of absorption of selling pressure and formation of reversal patterns.
On the upside, immediate resistance lies in the 24,800–24,900 region, representing a key supply zone. A decisive breakout and close above this level would confirm a short-term bottom and could pave the way for a near-term trend reversal, potentially targeting 25,100–25,200 as the next hurdle. Until then, caution is warranted.
Global Markets
Asian shares edged higher on Tuesday while gold extended its record-breaking rally, as investors weighed the risk of a potential U.S. government shutdown that could delay key jobs data.
MSCI’s broad Asia-Pacific index outside Japan rose 0.5% in early trade, setting up for a 5.6% monthly gain — its strongest performance in a year. In contrast, Japan’s Nikkei slipped 0.3%, marking its third straight day of losses.
Heightened economic and trade uncertainty continued to support gold, which surged to a fresh all-time high of $3,843.49.
FII/DII Tracker
On the institutional front, Foreign Institutional Investors (FIIs) sold equities worth a little over Rs 2,800 crore on September 26, while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 3,690 crore, data from NSE showed.
Crude impact
Oil prices, however, remained under pressure amid expectations of higher OPEC+ output and the restart of crude exports from Iraq’s Kurdistan region. U.S. crude eased 0.6% to $63.07 a barrel, while Brent fell 0.6% to $67.51.Rupee vs Dollar
Indian rupee opened at 88.69 per dollar on Tuesday versus Monday's close of 88.76. The dollar slid against major currencies such as the euro and yen on Monday following a rally last week after stronger-than-expected U.S. economic data.
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