Sensex Surges 400 Points, Nifty Opens Above 24,100 Led by IT Rally

Sensex rises over 400 pts, Nifty opens higher at 24,127; IT stocks lead rally

Mumbai, July 17

Both the indices opened with a gap-up; Sensex was trading at around 77,631.76, up 444.89 points or 0.58 per cent while Nifty was trading at around 24,188.85, up 116.10 points or 0.48 per cent at the time of reporting.

Sectorally, Nifty IT emerged as major gainer, inching 1.89 per cent, in the early morning trade. Meanwhile, most indices traded in the red with Nifty Pharma and Healthcare emerging as top drag.

On BSE, Infosys, Tech Mahindra, TCS, HCL Tech, Reliance, M&M, Hindustan Unilever, SBI, Bajaj Finance, Tata Steel, Indi Go, among others were the major gainers. Eternal, Sun Pharma, NTPC, Trent among others were the major losers.

In the global markets, oil prices edged higher on Friday as escalating tensions between the United States and Iran raised concerns over oil supplies through the Strait of Hormuz.

Brent crude rose USD 1.05, or 1.25 per cent, to USD 85.28 a barrel, while U.S. West Texas Intermediate (WTI) crude gained USD 1.03, or 1.3 per cent, to USD 79.98 a barrel. Brent crude was trading at USD 84.92 per barrel at the time of reporting.

Gold prices on the other hand rebounded on Friday, but remained on track for their biggest weekly decline in six weeks. The precious metal was trading at around USD 3,996.30 at the time of reporting.

Rajesh Palviya, Head of Research, Axis Direct, said, "Nifty continues to consolidate within a narrow range, signalling indecision rather than weakness. The 23,900-23,800 zone remains a crucial support area, while 24,150 is the immediate hurdle."

"A sustained move above this level could trigger fresh momentum towards 24,300, whereas a break below support may invite another round of profit booking. With earnings season gathering pace, stock-specific opportunities are likely to outperform broad index moves, keeping volatility elevated despite a range-bound headline index," he added.

Abhishek Kumar, Financial planner and SEBI RIA, noted, "Indian equities opened the session on a decent note, reflecting the morning's cautious GIFT Nifty bias. The Nifty 50 opened near the 24,000 mark, while global tech weakness could cap initial momentum. A headwind persists from Brent crude prices surging near $85/barrel due to Middle East tensions, which continues to sustain domestic inflation concerns."

Kumar further noted, "While Wall Street provided weak signals overnight with a significant drop in Nasdaq, the reclamation of the 24,000 support level in the previous session remains a critical base for current sentiment. Oil-sensitive sectors are under pressure, while Banking is attempting to stabilise. Outlook remains cautious for the session as indices look to global cues."

Ponmudi R, CEO of Enrich Money, noted, "Persistent tensions in the region continue to fuel concerns over disruptions to energy supplies through the Strait of Hormuz, while sustained strength in oil prices and continued weakness in the rupee remain key headwinds for domestic market sentiment."

"A sustained breakout above this level would strengthen bullish momentum and could pave the way for an advance towards the 24,300-24,400 region. On the downside, the 24,000 psychological mark continues to serve as the immediate and crucial support. Holding above this level will be essential to preserve the broader recovery structure, while a decisive break below 24,000 could trigger renewed selling pressure and expose the index to the 23,900-23,800 support zone," he said.

— ANI