Sensex, Nifty open nearly 1 pc higher; IT, metal stocks drive rally
Mumbai, July 3
Indian equity markets opened higher on Friday amid mixed global cues, with benchmark indices rising nearly 1 per cent each as buying was led by IT, metal, pharma and chemical stocks.
Sensex began session at 78,152.34, up 650 points or 0.84 per cent, while Nifty opened around 200 points or 0.83 per cent higher at 24,375.65.
Sector-wise, Nifty IT surged nearly 2 per cent, while Nifty Metal gained 1.66 per cent. Nifty MidSmall IT & Telecom, Chemicals and Pharma indices advanced over 1 per cent, 0.82 per cent and 0.72 per cent, respectively.
In contrast, the Nifty PSU Bank index declined 0.87 per cent.
Among Nifty 50 constituents, Tata Motors Passenger Vehicles (TMPV), NTPC, SBI and Axis Bank were the top losers.
The broader market remained firm, with Nifty Smallcap 50 and Nifty Smallcap 100 indices rising 0.48 per cent and 0.46 per cent, respectively. Nifty 100 gained 0.46 per cent, while Nifty 500 advanced 0.41 per cent.
India VIX -- the volatility index -- fell 1.62 per cent to 12.09.
According to market experts, the near-term outlook remains cautiously optimistic.
For the Nifty, sustained strength above the 24,000 mark keeps the broader trend positive, with immediate resistance seen at 24,300, followed by 24,450, they said.
On the downside, 24,050 remains a key support level, while a breach could trigger a corrective move towards 23,900.
They added that investors should remain watchful of the ongoing global technology sell-off, as renewed weakness in semiconductor stocks could prompt profit booking after the recent sharp rally in domestic IT names.
International oil benchmark Brent crude rose 0.77 per cent to $72.36 per barrel, while US West Texas Intermediate (WTI) crude gained 0.68 per cent but remained below $70 per barrel.
In Asian markets, shares traded largely higher, with the Nikkei, Hang Seng and KOSPI rising up to 3 per cent.
Wall Street ended lower overnight amid selling in technology shares. The Nasdaq declined 0.80 per cent, while the S&P 500 closed flat.
— IANS
Reader Comments
Happy to see the markets up but honestly, as a retail investor, I'm still cautious. The experts say 24,000 is a key support for Nifty, but the global tech sell-off is concerning. Hope it's not just a temporary bounce before another correction. Better to stay diversified.
Interesting to see metal stocks joining the rally. With global demand picking up and China stimulus talks, this sector might have more legs. But I'd keep an eye on Brent crude above $72 - if oil keeps rising, it could impact our import bill and inflation. Mixed emotions essentially.
That PSU Bank index decline is worrying - 0.87% drop despite overall market being up 0.84%. Shows the banking sector is still struggling. SBI and Axis Bank among top losers ... maybe investors are worried about asset quality or NPAs again? 🤔 Need more clarity on the banking outlook.
Love seeing the volatility index (India VIX) falling to 12.09 - that's a sign of confidence! But I agree with the experts, we need to be watchful of the semiconductor stock weakness globally. IT stocks have rallied too fast. Could be time for some profit booking. Still, on the whole, a good day for Dalal Street! 🎉
One good day doesn't make a trend. The Sensex is up 650 points but many of us small investors are still nursing losses from the earlier fall. Also, Nifty PSU Bank dropping is a red flag - government bank reforms still have a long way to go. Let's not get carried away. Stay grounded, people.