Stock market update: Sensex, Nifty climb in early trade on rally in global markets, foreign fund inflows

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Equity benchmark indices climbed in early trade on Tuesday tracking a rally in global markets and fresh foreign fund inflows.

The 30-share BSE Sensex climbed 241.68 points to 81,801.22 in early trade. The NSE Nifty went up 78.4 points to 25,014.80, reported PTI.

Among the 30 Sensex firms, Power Grid, Bharti Airtel, Axis Bank, Tata Steel, NTPC, Sun Pharma, Larsen & Toubro and Titan were the biggest gainers.

Bajaj Finserv, Mahindra & Mahindra, Bajaj Finance and Kotak Mahindra Bank were among the laggards.

In Asian markets, Seoul, Tokyo and Hong Kong were trading higher while Shanghai quoted lower.

According to experts, global markets bounced back after the decline on Monday and last week, but volatility is expected as the Fed rate cut date approaches on September 18.

"The US markets had a relief bounce back, with Big Tech also recovering some of the last week's losses. Asian markets are following the US cues and are largely positive. This is more of a technical dip buying, as the four issues of economic slowdown and falling commodity prices, rate hikes by BOJ , overextended global markets with a concentrated Big Tech base, and an imminent Fed rate cut on September 18, continue to cast a shadow on markets. Global cues remain the dominant theme and we expect more volatility/weakness going into the September 18 announcement by the Fed," Ajay Bagga told ANI while speaking about the stock market update.

The US markets ended significantly higher on Monday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,176.55 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs) also bought equities worth Rs 1,757.02 crore.

Global oil benchmark Brent crude dipped 0.08 per cent to USD 71.78 a barrel.

"With an overnight rebound on Wall Street, strong net buying from both FIIs and DIIs, and sluggish oil prices, bullish traders are expected to pursue bargains," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said while speaking about the stock market update, reported PTI.

The BSE benchmark Sensex rebounded 375.61 points or 0.46 per cent to settle at 81,559.54 on Monday. The NSE Nifty went up by 84.25 points or 0.34 per cent to finish at 24,936.40 after three days of fall.

(With inputs from PTI and ANI)