The benchmark equity indices Sensex and Nifty extended their winning run for the fifth straight session on Tuesday, supported by foreign fund inflows and a decline in crude oil prices to pre-war levels amid easing tensions in West Asia.

At around 11:15 a.m., the Sensex was trading 277.62 points or 0.35 percent higher at 78,562.69. The broader Nifty rose 78.75 points or 0.32 percent to 24,509.10.

Among stocks, Titan jumped 3.3 percent after reporting a 41 percent growth in its consumer business in the first quarter, aided by healthy festival demand in its core jewellery segment.

Jubilant FoodWorks gained 3.4 percent after the company said its consolidated revenue rose 14.1 percent year-on-year in the June quarter.

Trent, however, declined 11 percent after reporting lower-than-expected standalone revenue growth for the June quarter in its business update.

Key factors behind market gain

1) FII Buying: Foreign Institutional Investors (FIIs) bought equities worth Rs 243.03 crore on Monday.

"There are distinct signs of an uptrend in the market. Two factors which were weighing on Indian markets - the crude price hike and sustained FPI selling- are now behind us and has reversed. Crude is back to the pre-war level and FPIs have turned buyers," VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said.

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 sustain supported by fundamentals, he added.

2) Decline in crude oil prices: Brent crude, the global oil benchmark, was trading at USD 72.45 per barrel.

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3) Rupee rises: The rupee appreciated 15 paise to 95.28 against the US dollar on improved market sentiment after reports that Saudi Arabia had cut August crude oil prices for Asia amid easing geopolitical tensions in West Asia. Forex traders said lower West Asia risk premium and higher traffic through the Strait of Hormuz kept crude oil prices under check. At the interbank foreign exchange market, the rupee opened at 95.33 against the US dollar and later strengthened to 95.28, up 15 paise from its previous close.

4) Strong quarterly updates: The Sensex and the Nifty have gained 2.4 percent each over the past four sessions, ending at their highest closing levels in 10 weeks, led by banking stocks after first-quarter business updates indicated healthy loan growth.

"The Nifty has reclaimed the 200-day exponential moving average for the first time since February, suggesting the broader uptrend remains firmly intact," Aakash Shah, Technical Research Analyst at Choice Equity Broking told Reuters.

The 200-day exponential moving average is considered a key long-term trend indicator, with sustained movement above it seen as a sign of improving market momentum and investor confidence.

While the market could consolidate after the recent rally, declines are likely to attract buying interest as long as the Nifty remains above the 24,300-24,400 support zone, Shah said.

5) Buying in IT shares: The IT index rose 2 percent, extending its rebound in July to 6 percent after a 10.5 percent decline over the previous two months, ahead of Tata Consultancy Services quarterly earnings due on Thursday.

Technical Outlook

Anand James, Chief Market Strategist at Geojit Investments, said, "Yesterday’s close above 24400 has improved the chances of the much anticipated 24800-25250 move. But as cautioned yesterday, spikes to 24600 region might attract some rejection trades. With the prospects of volatility and upside objectives thus outlined, we will go in today with downside marker placed at 24360 until 24600 is seen."

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