Sensex jumps 500 points, Nifty above 22,400; IT stocks gain
The Indian stock market opened in the green on Friday as oil prices cooled down after US President Donald Trump ruled out near-term strikes on Iran, helping Sensex and Nifty recover some losses after yesterday’s sharp crash wiped off more than Rs 10 lakh crore from Dalal Street.
At 9.38 AM, Sensex gained over 500 points to 72,100 while Nifty 50 jumped over 150 points to trade above the 22,400 level. Broader markets however remained mixed, with Nifty Midcap 100 in the green and Nifty Smallcap 100 in the red.
IT stocks led the gains on Sensex after TCS’ Q2 results impressed market and OpenAI’s weak earnings boosted sentiment, bucking worries after Trump extended push for a $100,000 fee for H-1B non-immigrant visas. Shares of TCS, Infosys, HCL Tech and Tech Mahindra jumped up to 4%, while shares of ITC, Adani Ports, HDFC Bank, Power Grid, Bharti Airtel and HUL gained up to 2%.
Bucking the trend, Eternal, BEL, Reliance Industries, ICICI Bank, Trent, M&M and IndiGo shares fell up to 2% to lead losses on Sensex. The overall market breadth however remained negative, with NSE seeing 1,698 declines against 1,115 advances, while 90 stocks remained unchanged.
Among the sectors, Nifty IT jumped 3% to lead gains, while Nifty FMCG gained nearly 1%. Nifty Pharma and Nifty Oil & Gas declined nearly 1%.
What lies ahead for Dalal Street?
Elevated crude price and high US bond yields may continue to impact the market, warned V K Vijayakumar, Chief Investment Strategist, Geojit Investments. These two strong headwinds have turned the near-term Indian market structure to a strong “sell on rally” structure. This sustained FII selling spree has emboldened the bears to go short even on fundamentally strong bluechips, weakening the market further, he added, cautioning that the elevated crude prices and high US bond yields can make FIIs continue selling in the near-term, irrespective of the favourable valuations, particularly of the largecaps.
“Stock market history tells us that crises are great opportunities to buy. The ongoing corrective phase of the market has opened up opportunities for patient long-term value investors to accumulate high quality stocks from the market. The risk-reward structure of the market now is highly favourable for medium to long-term investment,” he added.
Technical view on Nifty
The 22,050 region for Nifty is within touching distance, bringing 19,000 and 16,700 back in the radar, warned Anand James, Chief Market Strategist, Geojit Investments. But, being at the lower bollinger band, the analyst noted a swing higher is hoped for though, early in the day.
However, upside expectations will stay limited, as long as Nifty holds within the 22,290-22,350 band, but a direct rise above the same could call for 22,440-22,600, he noted. Downside marker for the day may be placed near 22,140, according to the analyst.
Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
At 9.38 AM, Sensex gained over 500 points to 72,100 while Nifty 50 jumped over 150 points to trade above the 22,400 level. Broader markets however remained mixed, with Nifty Midcap 100 in the green and Nifty Smallcap 100 in the red.
IT stocks led the gains on Sensex after TCS’ Q2 results impressed market and OpenAI’s weak earnings boosted sentiment, bucking worries after Trump extended push for a $100,000 fee for H-1B non-immigrant visas. Shares of TCS, Infosys, HCL Tech and Tech Mahindra jumped up to 4%, while shares of ITC, Adani Ports, HDFC Bank, Power Grid, Bharti Airtel and HUL gained up to 2%.
Bucking the trend, Eternal, BEL, Reliance Industries, ICICI Bank, Trent, M&M and IndiGo shares fell up to 2% to lead losses on Sensex. The overall market breadth however remained negative, with NSE seeing 1,698 declines against 1,115 advances, while 90 stocks remained unchanged.
Among the sectors, Nifty IT jumped 3% to lead gains, while Nifty FMCG gained nearly 1%. Nifty Pharma and Nifty Oil & Gas declined nearly 1%.
What lies ahead for Dalal Street?
Elevated crude price and high US bond yields may continue to impact the market, warned V K Vijayakumar, Chief Investment Strategist, Geojit Investments. These two strong headwinds have turned the near-term Indian market structure to a strong “sell on rally” structure. This sustained FII selling spree has emboldened the bears to go short even on fundamentally strong bluechips, weakening the market further, he added, cautioning that the elevated crude prices and high US bond yields can make FIIs continue selling in the near-term, irrespective of the favourable valuations, particularly of the largecaps.
“Stock market history tells us that crises are great opportunities to buy. The ongoing corrective phase of the market has opened up opportunities for patient long-term value investors to accumulate high quality stocks from the market. The risk-reward structure of the market now is highly favourable for medium to long-term investment,” he added.
Technical view on Nifty
The 22,050 region for Nifty is within touching distance, bringing 19,000 and 16,700 back in the radar, warned Anand James, Chief Market Strategist, Geojit Investments. But, being at the lower bollinger band, the analyst noted a swing higher is hoped for though, early in the day.
However, upside expectations will stay limited, as long as Nifty holds within the 22,290-22,350 band, but a direct rise above the same could call for 22,440-22,600, he noted. Downside marker for the day may be placed near 22,140, according to the analyst.
Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
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