Markets trade higher in early trade on buying in IT stocks, firm trend in Asian peers

New Delhi: Benchmark indices Sensex and Nifty were trading in positive territory in early trade on Tuesday helped by buying in IT stocks and a firm trend in Asian markets.

The 30-share BSE Sensex climbed 66.28 points to 80,670.36 in early trade. The 50-share NSE Nifty went up by 42.85 points to 24,627.90.

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Later, the BSE benchmark quoted 205.95 points higher at 80,807.55, and the Nifty traded 59 points up at 24,643.20.

From the Sensex firms, Tech Mahindra, Tata Consultancy Services, Mahindra & Mahindra, HCL Tech, Larsen & Toubro and Tata Steel were among the major gainers.

However, Eternal, Bharat Electronics, Bajaj Finance and ICICI Bank were among the laggards.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng were trading in positive territory.

The US markets ended lower on Monday.

"Nifty bulls regained some momentum in Monday’s trade, ending 222 points higher at 24,585, while Bank Nifty closed at 55,511. The market now eyes the key 25,000 level amid expected volatility ahead of US and India CPI data due Tuesday, and the Trump-Putin Summit on Friday. Sentiment is buoyed by record mutual fund inflows in July, with SIP contributions at Rs 28,464 crore and total AUM crossing Rs 75.36 lakh crore," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Equity-oriented mutual funds garnered a net inflow of Rs 42,702 crore in July, making it the highest-ever monthly tally for the segment, propelled by contributions from thematic and flexi-cap funds, despite heightened market volatility plagued by tariff war with the US.

Additionally, a healthy growth was witnessed in SIP (Systematic Investment Plan) inflow at Rs 28,464 crore during the month under review, an increase from Rs 27,269 crore in June, data released by the Association of Mutual Funds in India (Amfi) showed on Monday.

Global oil benchmark Brent crude climbed 0.33 percent to USD 66.85 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,202.65 crore on Monday, according to exchange data.

On Monday, the Sensex jumped 746.29 points or 0.93 percent to settle at 80,604.08. The Nifty climbed 221.75 points or 0.91 percent to 24,585.05.

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