Sensex, Nifty Open Higher as IT Stocks Lead Gains Despite Weak Global Cues

Indian equity benchmark indices opened higher on Friday, supported by buying in information technology (IT) stocks and positive domestic cues, despite weakness in global markets.

The BSE Sensex opened at 73,665.64, gaining over 400 points, or 0.57 per cent, while the NSE Nifty 50 began trading at 22,742.20, up 54.55 points, or 0.24 per cent.

Sectorally, IT stocks led the gains, with the Nifty IT index rising nearly 3 per cent in morning trade. The Nifty MidSmall IT & Telecom index advanced around 1 per cent, while the Nifty Pharma and Nifty Healthcare indices also traded marginally higher.

In contrast, the Nifty Metal, Nifty Realty and Nifty MidSmall Financial Services indices declined by up to 1 per cent.

Market analysts said the surge in Brent crude oil prices to $114 per barrel remained a major concern for the economy and equity markets. However, a decline in the US 10-year Treasury yield to 4.96 per cent and the rupee’s appreciation could help limit foreign institutional investor (FII) selling.

Analysts also pointed to a potential liquidity boost following the Jio Platforms initial public offering (IPO). Of the Rs 3.73 lakh crore invested in the IPO over the past two days, more than Rs 3 lakh crore is expected to return to the financial system after share allotment by next Monday.

“This potential liquidity surge can lift the market next week,” analysts said.

On the technical front, the Nifty’s Relative Strength Index (RSI) stood at 43.98, above its average of 38.86, while the Put-Call Ratio (PCR) eased to 0.82. Immediate support for the index is seen in the 22,600–22,650 range, with resistance at 22,900–23,000, according to analysts.

On Thursday, foreign institutional investors remained net sellers, offloading equities worth Rs 3,459 crore, while domestic institutional investors (DIIs) provided support with net purchases of Rs 2,891 crore.

Global market sentiment remained subdued. In the United States, the Nasdaq Composite fell 2.6 per cent on Thursday amid a technology sector sell-off driven by concerns surrounding artificial intelligence stocks.

Asian markets also opened lower on Friday, with Japan’s Nikkei index declining around 1.7 per cent.

(IANS Inputs)