The 30-share benchmark opened with significant gains and saw further consolidation as the trade progressed, continuing its winning streak.
In early trading on Tuesday, the BSE Sensex rose over 277 points, reflecting overall optimism in global markets, led by record-setting US stocks.
Similarly, the NSE Nifty rose 80.40 points (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 around 272 points to end at 17,626.
NTPC, PowerGrid, Axis Bank, SBI, Bajaj Finance, and RIL were among the top gainers on the Sensex chart on Tuesday, rising as much as 2.31 percent.
The 30-share benchmark opened with significant gains and saw further consolidation as the trade progressed, continuing its winning streak. In early trading, the Sensex was trading at 59,461.07, up 277.85 points or 0.47 percent.
HCL Tech, Tech Mahindra, Wipro, and Infosys, on the other hand, were among the major laggards.
“The first trading day of 2022, with US markets setting new highs, is auspicious for global stock markets.” Bullish signals include the Nifty’s spectacular 271-point rally and FIIs turning buyers with net purchases worth Rs 703 crore, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Financials, particularly the leading banks, are likely to maintain the momentum seen in the previous session, he added, if the FIIs’ buying on Monday is an indication of their renewed interest in India.
The third wave of the pandemic, however, is a source of concern, even though the market believes it will have little impact on economic activity, according to Vijayakumar.
He went on to say that rising inflation is a major headwind for markets around the world, which could be exacerbated by the Omicron variant’s dislocations.
In Asia, bourses were higher on Tuesday, tracking record gains in US equities on the first trading day of 2022.
Meanwhile, Brent crude, the international benchmark for oil, rose 0.27 percent to USD 79.19 per barrel.
On Monday, foreign institutional investors (FIIs) were net buyers in the capital market, buying shares worth Rs 575.39 crore, according to exchange data.