“The market has been oscillating in a narrow range during the last two months. A breakout above the upper band of the range, well beyond Nifty 25,500, needs positive triggers. Such a trigger may come from an India-US trade deal with tariffs on India pegged at around 20 per cent. If this happens, can it trigger a sustained rally in the market? Unlikely. A sustained rally in the market needs earnings support,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
There are no signs of a strong earnings support and earnings growth visibility, he said.
“Two big segments of the market – IT services and consumption, particularly FMCG – are struggling with tepid earnings,” Vijayakumar added.
Foreign Institutional Investors (FIIs) bought equities worth Rs 120.47 crore on Tuesday, according to exchange data.
“The Nifty is likely to open cautiously as traders digest sticky US inflation data and ongoing tariff threats.” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said in his pre-opening market commentary.
Global oil benchmark Brent crude went up by 0.20 per cent to USD 68.85 a barrel.
On Tuesday, the Sensex climbed 317.45 points or 0.39 per cent to settle at 82,570.91.
The Nifty edged higher by 113.50 points or 0.45 per cent to 25,195.80.