Markets open higher; Sensex gains over 300 points, Nifty above 24,100 in early trade

MUMBAI: Indian equity markets opened higher on Friday, with the Sensex gaining over 300 points and the Nifty crossing the 24,100 mark, amid a lack of decisive global cues. The gains came a day after sharp downward spikes in the Sensex during the fag end of the monthly expiry session unsettled investors.

Both the benchmark indices opened with a gap-up. Sensex opened at 77,128.05 against the previous close of 76,933.59 and was trading at around 77,250.02, up 316.43 points or 0.41 per cent at the time of reporting. Likewise, Nifty opened at 24,122.60 against the previous close of 24,090.85 and was trading at around 24,145.45, up 54.60 points or 0.23 per cent.

Most sectoral indices traded in the green, while pressure was seen in financial services, cement and banks during the early morning trade. At the same time, all broad market indices traded in the green.

On BSE, Tech Mahindra, Infosys, TCS, HCL Tech, Tata Steel, Eternal, Power Grid, Sun Pharma among others were the major gainers. Bjaja Finance, ICICI Bank, SBI, BEL among others were the top drags. Likewise, on NSE, Tech Mahindra, Infosys, TCS, Wipro, Tata Steel, Reliance, LT, Power Grid, Hindalco, Bharti Airtel among others were top gainers. Bajaj Finance, Cipla, Grasim, ITC, Hindustan Unilever, ICICI Bank, Axis Bank among others were top laggards.

In the commodity market, Brent crude was trading at around USD 88.20 per barrel while crude oil was trading at around USD 83.12 per barrel at the time of reporting.

As per market and banking expert Ajay Bagga, Indian markets are benefiting from a strong macro, but there are looming headwinds due to the disrupted global oil and gas supplies, rising food inflation and the effects of the Iran war. “Indian markets remain in a range and any breakout will depend on a durable earnings recovery. With the Bank of Japan slotted to raise rates at its September meeting and ECB/ BOE/ RBA all grappling with elevated inflation, the situation is challenging for the Indian economy and markets,” he said.

Market analyst Vipin Dixena noted, today’s market is showing a cautious recovery after two consecutive sessions of decline. “The opening is encouraging, but I would like to see stronger follow-through buying before calling this a meaningful reversal. The broader setup remains mixed. On the positive side, global technology stocks have provided some support and crude oil has eased from recent highs,” he said.

As per the analyst, technically, 24,000 remains the most important support. He added, Nifty’s ability to hold above this level after yesterday’s decline is crucial for stabilisation. “On the upside, 24,200-24,300 is the immediate resistance zone, and a sustained move above 24,300 could improve the short-term structure and open the door towards 24,400. If 24,000 breaks decisively, however, the downside pressure could intensify,” he noted. (ANI)