Sensex, Nifty open steady amid profit booking; PSU banks gain on reports of higher FDI cap

Equity Markets Open Steady; PSU Banks in Focus on FDI Cap Buzz.

Benchmark equity indices opened on a cautious note on Tuesday as investors booked profits following recent gains. Banking stocks were in the spotlight amid reports that the government may increase the foreign investment limit in public sector banks to 49%.

At around 9:18 am, the S&P BSE Sensex was up 66.76 points at 84,845.60, while the NSE Nifty50 added 14.25 points to 25,980.30. Broader market indices also opened slightly higher, though rising volatility indicated the potential for a choppy session.

Among the top gainers on the Nifty50 were SBI, Tata Steel, Bharti Airtel, Titan, and L&T, while IndiGo, ICICI Bank, Bajaj Finance, Ultratech Cement, and ONGC were among the major laggards. According to Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the broader market tone remains constructive.

“News flows indicate continuation of the positive momentum in the market,” he said. “If there’s a breakthrough in the Trump–Xi meeting on Thursday, it could provide another leg up to global equities, especially since the S&P 500, Nikkei, and Kospi are already at record highs.”

He added that expectations of a US Federal Reserve rate cut at the upcoming FOMC meeting could further buoy global sentiment, with inflation in the US holding steady at 3% year-on-year. “There is fundamental support for the Indian market from GDP growth and corporate earnings,” Vijayakumar noted. “However, high valuations remain a concern and could trigger profit-booking by foreign investors if the rally extends.”

Anand James, Chief Market Strategist at Geojit Financial Services, said Nifty’s short-term outlook remains positive, though a decisive breakout is crucial. “Monday’s upswing couldn’t cross the 25,940–26,000 zone, but a move above 26,000 could extend the uptrend,” he said. “Conversely, a dip below 25,900 might weaken momentum, though a sharp fall toward 25,590–25,400 appears unlikely.”

With PSU banks in focus and global cues guiding sentiment, analysts expect range-bound trading through the session, with selective action in financial and metal counters.