Source : INDIA TODAY NEWS
Stock markets opened higher on Thursday, led by information technology stocks, as investors tracked corporate earnings and falling crude oil prices. However, concerns over hotter-than-expected US inflation and the possibility of another Federal Reserve rate hike could limit gains, keeping sentiment cautious.
The BSE Sensex was trading at 73,215.72, up 433.83 points or 0.60%, around 9:25 am. The index opened at 72,965.80 and moved between 72,896.38 and 73,222.11 in early trade.
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The Nifty 50 rose 121.15 points, or 0.54%, to 22,743.85 around 9:26 am. It opened at 22,671.30 and touched an early high of 22,744.25.
The benchmarks were recovering after Wednesday’s decline, when the Sensex fell 0.34% and the Nifty lost 0.44%, snapping the previous session’s rally.
IT STOCKS LEAD THE GAINS
Information technology stocks led the advance, with the Nifty IT index rising 1.54%. TCS gained 2.30%, Tech Mahindra advanced 2.04% and Infosys rose 1.85%. ICICI Bank gained 1.25%, while Axis Bank and Bharti Airtel rose 1.11% and 1.06%, respectively.
HCLTech advanced 1.03%, while ITC gained 0.90% and HDFC Bank rose 0.73%. UltraTech Cement, Hindustan Unilever and Indigo were also trading higher.
However, gains were uneven across the market. Bajaj Finance fell 0.23%, Bajaj Finserv declined 0.23% and Eternal slipped 0.25%. Sun Pharma, NTPC, Titan, Larsen & Toubro, Trent, Adani Ports and BEL were also in the red.
BROADER MARKETS MIXED, BANKING STOCKS UNDER PRESSURE
The broader market showed a mixed trend. The Nifty 100 rose 0.25%, the Nifty 200 gained 0.15% and the Nifty 500 edged up 0.06%. However, the Nifty Midcap 50 fell 0.26%, the Midcap 100 declined 0.27% and the Smallcap 100 dropped 0.88%.
Sectorally, the Nifty IT index led gains, followed by financial services, FMCG and private banks. The Nifty PSU Bank index fell 1.36%, while the metal index declined 0.89%. Media, pharma, consumer durables and oil and gas stocks were also under pressure.
India VIX, the market’s volatility gauge, rose 0.73% to 14.73, indicating a slight increase in expected market volatility.
US INFLATION, CRUDE OIL IN FOCUS
Investors remained cautious after hotter-than-expected US consumer price inflation increased expectations of another Federal Reserve rate hike this year. Higher US interest rates can reduce the relative appeal of emerging markets such as India by making dollar-denominated assets more attractive.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the US inflation print, which rose from 3.4% in August to 3.7% in September, had increased the possibility of another rate hike by the Federal Reserve in October.
He said the resulting sell-off in US equities had affected technology stocks, with the Nasdaq falling 1.88%. Asian markets, including Japan and South Korea, also came under pressure in early trade.
From India’s perspective, Vijayakumar said a correction in artificial intelligence-linked stocks could be positive if it prompts foreign institutional investors to reconsider their recent preference for AI stocks over Indian equities.
He added that expectations of a possible review of LTCG tax in the upcoming Budget, along with strength in IT stocks following HCLTech’s results, could help domestic markets remain resilient. Expectations of strong second-quarter earnings from financial companies could also provide support.
Crude oil prices eased in early trade, with Brent crude falling 1.62% to $104.34 a barrel and US West Texas Intermediate declining 1.05% to $94.09. Lower oil prices could offer some relief to India, which relies heavily on crude imports, although global supply risks remain a concern.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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SOURCE :- TIMES OF INDIA
