Sensex rises over 150 points, Nifty above 24,450 as market extends gains for the 5th consecutive day

The Indian stock market traded in the green on Tuesday, with Sensex and Nifty extending gains for the fifth consecutive session as oil prices hovered at pre-war levels and foreign investors continued to remain net buyers of Indian equities.Sensex rose more than 150 points, while Nifty 50 was above 24,450 during Tuesday's session.

Broader markets also opened in the green, with Nifty Midcap 100 and Nifty Smallcap 100 indices gaining around 0.2% each.Eternal and HDFC Bank shares were the top gainers on the Sensex, rising more than 1% each.

Zudio-parent Trent shares however, sharply tumbled more than 9% to lead losses.

This came as India VIX, which measures volatility in the market, inched slightly higher to near 12.Sectorally, Nifty IT gained over 0.7% to lead gains, while Nifty Metal and Nifty Realty slipped into the red.

Around 1,180 stocks advanced on NSE, while 1,165 declined and 124 remained unchanged.Oil pricesOil prices inched slightly higher after reports said that a tanked in the Strait of Hormuz was struck by a projectile.

Brent crude futures gained around 1% to trade near $73 per barrel, while WTI Crude futures rose to $69 per barrel.Despite the gains, oil prices continue to remain in the range of pre-war levels, after soaring to as high as $120 per barrel during the raging conflict between Iran and US that sparked a massive global energy crisis.FII remain net buyersForeign investors remained net buyers of Indian equities for the fourth consecutive session, net purchasing shares worth Rs 243 crore on Monday, according to provisional data available on NSE.

“The FPI buying is not yet a strong trend, but the fact that they have stopped selling and turned buyers is a significant shift, which is likely to be supported by fundamentals,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.What lies ahead?There are distinct signs of an uptrend in the market, according to Vijayakumar.

Two factors which were weighing on Indian markets - the crude price hike and sustained FPI selling- are now behind us and have reversed, he said, noting that crude is back to the pre-war level and FPIs have turned buyers.“The auto retail sales numbers in June coming at an impressive 22% indicates that the growth momentum in the economy is intact.

The sharp decline in crude will keep inflation in check, which, in turn, will enable the RBI to continue with the low interest regime.

This means, the uptrend in the auto industry and financials, particularly banking, will continue supported by the low interest regime and impressive credit growth running above 17%.

These two sectors have the potential to lead the next leg of the rally, which is likely to be driven more by large caps.

Apart from autos and financials, oil and gas and telecom majors also will support the rally.

Retail buying will lift the broader market, too,” he added.Technical view on NiftyYesterday’s close above 24,400 has improved the chances of the much anticipated 24,800-25,250 move, said Anand James, Chief Market Strategist, Geojit Investments.

He however cautioned that spikes to 24,600 regions might attract some rejection trades.

“With the prospects of volatility and upside objectives thus outlined, we will go in today with a downside marker placed at 24,360 until 24,600 is seen,” he added.(With inputs from agencies)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.

These do not represent the views of The Economic Times) ...