Markets rally in early trade on buying in blue-chip stocks and positive global cues

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Benchmark indices Sensex and Nifty made a strong start in early trading on Tuesday, buoyed by buying interest in blue-chip stocks like HDFC Bank, State Bank of India, and a broad positive trend in global markets.

As of early trading, the BSE Sensex surged 300.98 points to reach 80,549.06, while the NSE Nifty advanced by 101.85 points, climbing to 24,377.90. Investors showed a preference for large-cap stocks, with notable gains in sectors like banking, steel, and finance. Among the top performers in the 30-share Sensex pack were Adani Ports, State Bank of India, HDFC Bank, JSW Steel, IndusInd Bank, Bajaj Finance, and JSW Steel, all benefiting from the early market momentum.

However, some stocks faced selling pressure, with ITC, Bharti Airtel, Sun Pharma, and Power Grid among the laggards, which restricted the overall gains in the broader market. The Indian market's positive performance follows trends in Asian markets, with Seoul, Tokyo, Shanghai, and Hong Kong showing a healthy rally on Tuesday morning.

US markets had ended on a positive note on Monday, which provided further support to the bullish sentiment in Asia. The Sensex's early gains were a reflection of this optimism, as global investors appeared confident amid a relatively stable outlook.

On the domestic front, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 238.28 crore on Monday. In contrast, Domestic Institutional Investors (DIIs) displayed greater confidence, purchasing shares worth Rs 3,588.66 crore, according to the latest exchange data.

Commenting on the market's resilience, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, "The strength in market heavyweights like Reliance and HDFC Bank continues to impart resilience to the overall market. Despite global volatility, the Indian market's ability to bounce back is noteworthy."

Meanwhile, the global oil benchmark, Brent crude, climbed slightly by 0.13 per cent, trading at USD 71.92 per barrel. This minor increase in oil prices added a sense of stability to the market.

On Monday, after recovering from early losses, the Sensex ended up 445.29 points, or 0.56 per cent, at 80,248.08, while the Nifty surged 144.95 points, or 0.60 per cent, to settle at 24,276.05. The market's resilience remains apparent, driven by positive corporate earnings, buoyant foreign fund inflows, and strong support from key sectors.