Sensex, Nifty extend gains but earnings concerns loom; Infosys gains 2%

Benchmark stock market indices opened higher on Tuesday, continuing its positive momentum built over the past few trading sessions, further helped by gains in IT sector stocks.
The S&P BSE Sensex was up 238.80 points to 80,348.65, while the NSE Nifty50 added 79.70 points to 24,301.80 as of 9:30 AM.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that the two-day rally in the market is unlikely to sustain beyond a point since earnings concerns are major headwinds.
“The impact of short covering and the positive sentimental effect of the Maharashtra election results will be temporary. Too much should not be read into the FIIs turning big buyers yesterday since that was due to MSCI rebalancing with higher weightage to HDFC Bank. Leading banks will remain resilient due to consistent buying and reasonable valuations,” he added.
“In the coming days, attention will be focused on what President Trump will do. Trump’s selection of Scott Bessent as the Treasury Secretary is a positive from the market perspective since he is regarded as a fiscal conservative. This can help bring down the bond yields in the US, thereby favouring EMs. But as of now, the dollar index above 107 is a headwind. A sustained rally in the market can happen only when indicators of earnings revival emerge. This is sometime away,” he said.