Indian stock markets are expected to open higher on Tuesday, building on a four-day recovery trend. The positive mood comes after a technology-led surge on Wall Street and falling treasury yields globally. Domestic institutional investors continue to support the market, helping offset recent selling pressure from foreign investors.
Indian benchmark indices are set for a positive start to trade on Tuesday, extending their recovery trend to a fourth consecutive session. This expected momentum follows strong gains in Asian markets and a significant rally on Wall Street, where the technology-heavy Nasdaq Composite hit a record closing high of 27,122.09.
The global mood has turned optimistic as concerns over high treasury yields have eased. Energy prices are also helping sentiment, with Brent crude stabilizing near the $100 per barrel mark, trading lower than levels seen earlier this month. Investors are tracking the United Nations General Assembly, where potential diplomatic discussions between the US and Iran could influence global oil supply concerns.
Inside the domestic market, the contrast in institutional activity remains a key theme. Exchange data shows foreign institutional investors (FIIs) sold Indian shares worth Rs 576 crore in the last session. However, domestic institutional investors (DIIs) provided a strong buffer by buying shares worth Rs 2,800 crore. This consistent buying from local institutions has been vital in keeping the Indian market stable despite global fluctuations and foreign selling pressure.
Investors will likely monitor how long this DII-led support continues and whether global commodity prices remain stable. The direction of treasury yields and any updates from diplomatic discussions regarding energy supplies will remain key factors for the market to track in the coming sessions.