Indian stocks in green for second day after heavy sell-off

NEW DELHI: Indian stock indices opened marginally in the green Tuesday, extending the positive momentum from the previous session closing, primarily due to fresh buying after the latest dip. At 9.19, soon after the opening bell, Sensex was at 72,979.48 points, up 203.34 points or 0.28 per cent, and Nifty was at 22,177.15 points, up 73.10 points or 0.33 per cent. All sectoral indices, barring Nifty pharma and Nifty healthcare index, were in the green at the time of filing this report.

Over the last week, indices had slumped consistently, which analysts asserted was due to a strong US dollar, uncertainty in Lok Sabha elections outcome after a decreasing voter turnout trend seen so far in the phases that went to vote, and a profit booking after the recent rally.

Also, continued selling by foreign portfolio investors (FPIs) and lower-than-expected earnings by some of the market moving corporate majors weighed on investor sentiment.

Foreign portfolio investors (FPIs) have turned net sellers in Indian stocks lately. Foreign portfolio investors (FPIs), who continued to remain net buyers for the third month until mid-April, have cumulatively sold stocks worth Rs 8,671 crore during the month, National Securities Depository Limited (NSDL) showed. So far in May, they have sold stocks worth Rs 18,375 crore.

"Under these circumstances the best option for investors is to wait and watch for a trend change, which can happen any time. Clarity on election trends is likely to come before June 4th, the counting day, and the market response can be strong. Buy on dips would be a good strategy now," said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

With annual retail inflation easing slightly in April, attention will now shift to wholesale inflation figures, due later in the day.