Nifty, Sensex open higher as FII buying offsets global volatility, IT stocks drag
Mumbai, July 31
Indian benchmark equity indices opened higher on Friday, supported by sustained foreign institutional investor buying and easing crude oil prices, even as global markets continued to witness heightened volatility and IT stocks came under pressure.
The NSE Nifty 50 opened at 24,361.45, up 44.30 points or 0.18 per cent, while the BSE Sensex gained 70.51 points or 0.09 per cent to 77,998.66.
Foreign institutional investors have remained net buyers over the past three trading sessions, purchasing equities worth a cumulative Rs 7,360 crore, lending support to domestic markets.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said sharp swings in global markets, particularly in the US and South Korea, have increased the appeal of relatively stable markets such as India.
"India is a stable market and the down risks are limited now, particularly in largecaps where the valuations are fair and growth prospects good. During the last three days FIIs have cumulatively bought equity for Rs 7,360 crores. This FII buying, though not a distinct trend so far, has the potential to impart resilience to the market. Q1 results released, so far, indicate revival of earnings growth momentum," he said.
Among sectoral indices on the NSE, Nifty IT was the only index in the red, falling 2.26 per cent. The broader market remained positive, with Nifty Auto rising 0.96 per cent, Nifty Metal gaining 0.60 per cent, Nifty Pharma advancing 0.59 per cent, Nifty PSU Bank climbing 0.38 per cent, Nifty Media adding 0.27 per cent, and Nifty FMCG edging up 0.23 per cent.
Brent crude prices declined 1.37 per cent to around USD 85 per barrel at the time of filing this report, while the Indian rupee traded at Rs 95.68 per US dollar.
Major companies scheduled to announce their Q1 results later in the day include ITC, Maruti Suzuki India, Bajaj Finserv, Indian Oil Corporation (IOC), GAIL (India), and Dixon Technologies, with their earnings expected to influence stock-specific action as well as broader market sentiment.
Other Asian markets traded mixed in the early session, with Japan's Nikkei 225 surging more than 4 per cent to 64,460, South Korea's KOSPI jumping over 14 per cent to 6,400, and Taiwan's weighted index rising more than 7 per cent to 42,785. In contrast, Hong Kong's Hang Seng slipped 0.18 per cent to 25,813, while Singapore's Straits Times declined 0.79 per cent to 5,628.
Overnight, US markets ended higher, with the S&P 500 gaining 1.66 per cent to close at 7,437, while the Nasdaq advanced 2.79 per cent to finish at 25,124.
— ANI
Reader Comments
IT stocks dragging again? Infosys, TCS, Wipro all under pressure. With global tech selling off, our IT sector is taking a hit. But auto and pharma doing well gives some balance. Let's hope the Q1 results today from Maruti and ITC beat estimates and keep the momentum going. 📈
Stable market compared to US and South Korea? That's the silver lining. FIIs buying ₹7,360 crore in three days is no joke. But I'm still cautious—global volatility is not over yet. For retail investors, the mantra remains: invest in good largecaps with fair valuations, avoid FOMO.
The rupee at 95.68 is concerning. While FIIs are buying, the currency depreciation is eating into returns for foreign investors. Also, Brent crude at $85 is not helping our import bill. Hoping the government keeps a check on inflation, otherwise the market rally won't mean much for the common man. 🧐
Nifty at 24,361 is a historic high, but the IT index falling 2.26% is a reality check. Our IT sector is heavily dependent on US and European markets, and with recession fears there, this drag could continue. Diversification is key—auto, pharma, and FMCG are the safe bets now. Let's see if the Q1 numbers justify this bull run.
Japan's Nikkei surging 4% and Korea's KOSPI up 14% in a day? That's wild volatility, makes India look stable indeed. But is it a good thing to be "stable
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