Indian equity markets open higher amid buying in IT sector shares
Mumbai, Oct 23
Indian equity benchmarks opened higher on Friday tracking positive domestic cues and buying in information technology sector stocks despite weak global signals.
Sensex opened at 73,665.64, an increase of over 400 points or 0.57 per cent, while Nifty started at 22,742.20, up 54.55 points or 0.24 per cent.
Sectorally, the market rally was driven by the technology sector as Nifty IT rose nearly 3 per cent in morning trade, followed by Nifty MidSmall IT & Telecom which surged 1 per cent.
Meanwhile, Nifty Pharma and Nifty Healthcare indices also traded marginally higher.
On the other hand, Nifty Metal, Nifty Realty and Nifty MidSmall Financial Services was decreased by up to 1 per cent.
Analysts said Brent crude spiking to $114 is a major negative for the economy and markets. However, the sharp decline in US 10-year yield to 4.96 per cent and rupee appreciation to 94.70 against the dollar are positives that can restrain FII selling significantly.
They further said more than Rs 3 lakh crore of the IPO money out of Rs 3.73 lakh crore that went into the Jio Platform IPO in the last two days will come back into the system after allotment by next Monday. "This potential liquidity surge can lift the market next week."
For Nifty, RSI stood at 43.98, above its average of 38.86, while PCR eased to 0.82. Immediate support is placed at 22,600-22,650, with resistance seen at 22,900-23,000, analysts said.
On Thursday, FIIs remained net sellers and offloaded equities worth Rs 3,459 crore, while DIIs provided buying support with net purchases of Rs 2,891 crore.
In US markets on Thursday, Nasdaq closed lower by 2.6 per cent amid an AI-led technology sell-off.
Similarly, Asian markets opened lower with Japan's Nikkei falling around 1.7 per cent.
— IANS
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