Sensex, Nifty trade flat in early deals on mixed cues

Indian equity markets traded mildly higher on Monday, supported by resilient domestic demand, strong corporate earnings and continued foreign investor buying. Sensex and Nifty gained around 0.2 per cent, while healthcare and IT stocks advanced as crude oil prices rose

Mumbai: Domestic equity markets traded subdued on Monday amid resilient domestic demand and continued foreign investor buying, while crude oil prices surged up to 1 per cent offering mixed cues for investors.

Sensex climbed 177.81 points or 0.22 per cent to hit an intraday high of 78,676 in early trade. Similarly, Nifty advanced around 50 points or 0.2 per cent to 24,620. Among sectoral indices, Nifty Pharma gained 0.72 per cent, followed by Nifty MidSmall Healthcare at 0.63 per cent and Nifty500 Healthcare at 0.63 per cent.

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Meanwhile, Nifty MidSmall IT & Telecom rose 0.58 per cent, while Nifty IT gained 0.53 per cent, while private banking, auto, consumer durables and realty shares also traded higher. On the other hand, Nifty Oil & Gas was the biggest laggard and declined by 0.27 per cent, followed by PSU Bank, down 0.21 per cent.

Market experts said the undertone remained mildly bullish, citing better-than-expected first-quarter earnings and resilient domestic demand. With the earnings season nearing its end, most companies have reported earnings growth that has exceeded expectations, they said.

Experts said domestic demand could continue supporting revenue and earnings growth in the second quarter, adding that banking and financial services, automobiles, pharmaceuticals, metals and digital platform companies are expected to remain relatively resilient despite headwinds, including deficient monsoon rains.

The monsoon shortfall has been partly offset by improved rainfall in July, they said. Foreign institutional investors turning net buyers in July and continuing to buy on most trading days in August so far is another supportive factor for the market, the experts said.

In the commodity market, international oil benchmark Brent crude was trading more than 1 per cent higher at $84.73 a barrel. US West Texas Intermediate crude gained 1.59 per cent to $79.43 a barrel.