Sensex rises 260 points, Nifty gains 64 points in early trade

Indian equity markets opened higher on Friday, tracking positive global cues, with Sensex rising 0.35 per cent and Nifty 0.28 per cent. Metal, realty and cement stocks gained, while IT stocks declined. FIIs remained net sellers on Thursday

Mumbai: Domestic equity markets opened higher on Friday, tracking positive global cues and amid buying in metal, real estate and cement stocks.

The Sensex opened at 74,575.24, up 260 points, or 0.35 per cent, while the Nifty rose 64 points, or 0.28 per cent, to 23,334.70. Among sectoral indices, the Nifty Metal gained the most, rising 0.76 per cent in early trade, followed by the Nifty Realty, which gained 0.74 per cent. The Nifty Cement index was up 0.55 per cent, while the Media index was trading 0.47 per cent higher.

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Meanwhile, healthcare, auto, banking, pharma, energy and FMCG indices were also trading higher. On the other hand, the Nifty IT declined more than 1 per cent, while the Nifty MidSmall IT & Telecom index fell 0.40 per cent.

Among Nifty constituents, Tata Motors Passenger Vehicles, TCS, Infosys, Tech Mahindra and HCL Technologies were the top losers, declining by up to 3 per cent in morning trade.

Analysts said resilience in the US market despite elevated bond yields and expectations of strong corporate earnings had supported global equities.

“The underlying strength of the economy is supporting the market, which continues to be buoyant, and this strength of the mother market is supporting markets elsewhere,” they said.

On the domestic front, experts said the ongoing boom in the primary market had shifted investor attention towards IPOs and listing gains, leaving some large-cap stocks in the secondary market depressed.

“For long-term investors, this is an opportunity. Leading banks, capital goods majors, select automobiles and pharmaceutical stocks provide buying opportunities,” they said.

Technically, the broader market structure remains weak, while the RSI at 29.95 indicates oversold momentum.

“Immediate support for the Nifty is placed at 23,000-23,150, while resistance is seen at 23,350-23,450. A decisive move beyond the resistance zone could signal a stronger recovery, while a break below support may keep the corrective trend intact,” the analysts said.

In addition, foreign institutional investors (FIIs) remained net sellers on Thursday, offloading equities worth Rs 3,208 crore, according to provisional exchange data. Domestic institutional investors (DIIs), meanwhile, continued to provide support and bought equities worth Rs 3,617 crore.

Global cues also remained positive. Overnight on Thursday, US markets ended higher, with the S&P 500 closing 1.14 per cent higher and the tech-heavy Nasdaq rising 1.69 per cent.

In Asian markets, Japan’s Nikkei was up nearly 2 per cent, while Hong Kong’s Hang Seng gained almost 1 per cent. South Korea’s KOSPI surged more than 2 per cent.

On the commodities front, international benchmark Brent crude declined 1 per cent to $103.61 per barrel, while US West Texas Intermediate (WTI) was around $101 a barrel, down 0.77 per cent.