Sensex gains over 350 pts, Nifty trades around 21,650 in early trade

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Indian equity markets opened on a positive note on Tuesday. At 10 am, NSE Nifty was up by 0.51 per cent or 109.95 points to 21,655.95, while BSE Sensex was at 71.720.83, up by 0.58 per cent or 353.22 points.

Of the 3,229 stocks traded, 2,314 advanced, 813 declined and 102 stocks remained unchanged. While 275 stocks hit 52 week high and 5 stocks hit 52 week low.,

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The 197 point decline in Nifty yesterday, despite marginal buying by both FIIs and DIIs, indicates strong build up of short positions in the market. Long positions are steadily declining and short positions are building up. This short build up is on bearish expectations that the present high valuations are difficult to sustain and some triggers may lead to sharp corrections.”

“This expectation need not be realised since global cues have again turned positive on a rally in the US market. Domestic cues are looking good. Buy on dips strategy may work again leading to some short covering. Strong JLR numbers from Tata Motors and the attractive buy back offer from Bajaj Auto will give support to the Nifty Auto Index. The real estate segment is doing well and the margin expansion happening in the industry bodes well for the sector. But the good news is in the price,” Vijayakumar added.

Major gainers on the NSE at 10 am include Bajaj Auto (2.51%), Adani Ports (2.41%), Wipro (1.69%), LTIMindtree (1.67%) and Adani Enterprises (1.55%). Britannia (0.27%), HDFC Life (0.13%) and Maruti (0.02%) were the laggards.

BSE SmallCap was up by 0.73 per cent and BSE Midcap was up by 0.36 per cent.