Markets open higher as IT stocks surge; Reliance rises before Q1 results
The S&P BSE Sensex climbed 456.40 points, or 0.59%, to 77,643.27, while the NSE Nifty50 gained 120.90 points, or 0.50%, to 24,193.65 as of 9:30 am.
Benchmark stock market indices opened higher on Friday, led by a strong rally in IT stocks after Tech Mahindra reported better-than-expected June quarter revenue. Investors also turned their focus to earnings from heavyweight companies, including Reliance Industries, due later in the day.
The S&P BSE Sensex climbed 456.40 points, or 0.59%, to 77,643.27, while the NSE Nifty50 gained 120.90 points, or 0.50%, to 24,193.65 as of 9:30 am.
The rally in domestic equities came after Tech Mahindra's quarterly revenue beat expectations, lifting sentiment across the IT sector. Reliance Industries also supported the market, rising 1.24% ahead of its June-quarter earnings announcement after market hours.
The rupee traded marginally stronger at 96.29 against the US dollar compared with its previous close of 96.345.
IT STOCKS LEAD GAINS
The Nifty IT index emerged as the top-performing sector, rising 1.33%, with buying seen across frontline software companies. Tech Mahindra led the Sensex gainers with a jump of 2.58%, followed by Infosys (1.99%), TCS (1.37%) and HCLTech (1.28%).
Among other Sensex constituents, Mahindra & Mahindra gained 1.34%, Reliance Industries advanced 1.24%, Hindustan Unilever rose 1.12%, SBI added 1.02% and Bajaj Finance climbed 1.01%.
Sectorally, Nifty Auto gained 0.98%, Financial Services rose 0.51%, Private Bank advanced 0.54% and PSU Bank added 0.52%. Nifty Oil & Gas also traded 0.33% higher.
However, some pockets remained under pressure. Nifty Pharma declined 1.05%, Media fell 1.04% and Realty slipped 0.13%.
BROADER MARKET UNDERPERFORMS
Unlike the benchmark indices, the broader market traded mixed. The Nifty 100 rose 0.40%, while the Nifty 200 gained 0.27% and the Nifty 500 added 0.12%. However, the Nifty Midcap 50 and Nifty Midcap 100 declined 0.28% each, while the Nifty Smallcap 100 fell 0.61%.
India VIX rose 1.39% to 13.06, indicating a slight increase in market volatility.
Among the laggards on the Sensex were Sun Pharma, down 0.52%, Bharti Airtel (-0.38%), Trent (-0.28%), IndiGo (-0.21%), ITC (-0.20%) and UltraTech Cement (-0.17%).
EARNINGS, FII FLOWS IN FOCUS
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said the market is likely to remain range-bound despite the positive opening, with investors closely tracking the rupee, foreign fund flows and the ongoing earnings season.
"The range-bound construct of the market is likely to continue. Depreciating rupee has been weighing on the market this week. FCNR(B) deposit mobilisation by commercial banks is running below expectations, impacted by the high bond yields in the US. This trend, contrary to expectations, has impacted the rupee, making it the worst-performing currency in Asia this week with a depreciation of over 1%. This has again impacted FII flows, which had turned positive early this month. Yesterday, FIIs sold equity worth Rs 4,206 crore, which might impact sentiment today.
"The big results from Reliance Industries today after market hours, and the results of the private banking majors on Saturday, can have an impact on the market next week. Private sector banks are expected to report good numbers."
(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.)
Benchmark stock market indices opened higher on Friday, led by a strong rally in IT stocks after Tech Mahindra reported better-than-expected June quarter revenue. Investors also turned their focus to earnings from heavyweight companies, including Reliance Industries, due later in the day.
The S&P BSE Sensex climbed 456.40 points, or 0.59%, to 77,643.27, while the NSE Nifty50 gained 120.90 points, or 0.50%, to 24,193.65 as of 9:30 am.
The rally in domestic equities came after Tech Mahindra's quarterly revenue beat expectations, lifting sentiment across the IT sector. Reliance Industries also supported the market, rising 1.24% ahead of its June-quarter earnings announcement after market hours.
The rupee traded marginally stronger at 96.29 against the US dollar compared with its previous close of 96.345.
IT STOCKS LEAD GAINS
The Nifty IT index emerged as the top-performing sector, rising 1.33%, with buying seen across frontline software companies. Tech Mahindra led the Sensex gainers with a jump of 2.58%, followed by Infosys (1.99%), TCS (1.37%) and HCLTech (1.28%).
Among other Sensex constituents, Mahindra & Mahindra gained 1.34%, Reliance Industries advanced 1.24%, Hindustan Unilever rose 1.12%, SBI added 1.02% and Bajaj Finance climbed 1.01%.
Sectorally, Nifty Auto gained 0.98%, Financial Services rose 0.51%, Private Bank advanced 0.54% and PSU Bank added 0.52%. Nifty Oil & Gas also traded 0.33% higher.
However, some pockets remained under pressure. Nifty Pharma declined 1.05%, Media fell 1.04% and Realty slipped 0.13%.
BROADER MARKET UNDERPERFORMS
Unlike the benchmark indices, the broader market traded mixed. The Nifty 100 rose 0.40%, while the Nifty 200 gained 0.27% and the Nifty 500 added 0.12%. However, the Nifty Midcap 50 and Nifty Midcap 100 declined 0.28% each, while the Nifty Smallcap 100 fell 0.61%.
India VIX rose 1.39% to 13.06, indicating a slight increase in market volatility.
Among the laggards on the Sensex were Sun Pharma, down 0.52%, Bharti Airtel (-0.38%), Trent (-0.28%), IndiGo (-0.21%), ITC (-0.20%) and UltraTech Cement (-0.17%).
EARNINGS, FII FLOWS IN FOCUS
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said the market is likely to remain range-bound despite the positive opening, with investors closely tracking the rupee, foreign fund flows and the ongoing earnings season.
"The range-bound construct of the market is likely to continue. Depreciating rupee has been weighing on the market this week. FCNR(B) deposit mobilisation by commercial banks is running below expectations, impacted by the high bond yields in the US. This trend, contrary to expectations, has impacted the rupee, making it the worst-performing currency in Asia this week with a depreciation of over 1%. This has again impacted FII flows, which had turned positive early this month. Yesterday, FIIs sold equity worth Rs 4,206 crore, which might impact sentiment today.
"The big results from Reliance Industries today after market hours, and the results of the private banking majors on Saturday, can have an impact on the market next week. Private sector banks are expected to report good numbers."
(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.)
Benchmark stock market indices opened higher on Friday, led by a strong rally in IT stocks after Tech Mahindra reported better-than-expected June quarter revenue. Investors also turned their focus to earnings from heavyweight companies, including Reliance Industries, due later in the day.
The S&P BSE Sensex climbed 456.40 points, or 0.59%, to 77,643.27, while the NSE Nifty50 gained 120.90 points, or 0.50%, to 24,193.65 as of 9:30 am.
The rally in domestic equities came after Tech Mahindra's quarterly revenue beat expectations, lifting sentiment across the IT sector. Reliance Industries also supported the market, rising 1.24% ahead of its June-quarter earnings announcement after market hours.
The rupee traded marginally stronger at 96.29 against the US dollar compared with its previous close of 96.345.
IT STOCKS LEAD GAINS
The Nifty IT index emerged as the top-performing sector, rising 1.33%, with buying seen across frontline software companies. Tech Mahindra led the Sensex gainers with a jump of 2.58%, followed by Infosys (1.99%), TCS (1.37%) and HCLTech (1.28%).
Among other Sensex constituents, Mahindra & Mahindra gained 1.34%, Reliance Industries advanced 1.24%, Hindustan Unilever rose 1.12%, SBI added 1.02% and Bajaj Finance climbed 1.01%.
Sectorally, Nifty Auto gained 0.98%, Financial Services rose 0.51%, Private Bank advanced 0.54% and PSU Bank added 0.52%. Nifty Oil & Gas also traded 0.33% higher.
However, some pockets remained under pressure. Nifty Pharma declined 1.05%, Media fell 1.04% and Realty slipped 0.13%.
BROADER MARKET UNDERPERFORMS
Unlike the benchmark indices, the broader market traded mixed. The Nifty 100 rose 0.40%, while the Nifty 200 gained 0.27% and the Nifty 500 added 0.12%. However, the Nifty Midcap 50 and Nifty Midcap 100 declined 0.28% each, while the Nifty Smallcap 100 fell 0.61%.
India VIX rose 1.39% to 13.06, indicating a slight increase in market volatility.
Among the laggards on the Sensex were Sun Pharma, down 0.52%, Bharti Airtel (-0.38%), Trent (-0.28%), IndiGo (-0.21%), ITC (-0.20%) and UltraTech Cement (-0.17%).
EARNINGS, FII FLOWS IN FOCUS
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said the market is likely to remain range-bound despite the positive opening, with investors closely tracking the rupee, foreign fund flows and the ongoing earnings season.
"The range-bound construct of the market is likely to continue. Depreciating rupee has been weighing on the market this week. FCNR(B) deposit mobilisation by commercial banks is running below expectations, impacted by the high bond yields in the US. This trend, contrary to expectations, has impacted the rupee, making it the worst-performing currency in Asia this week with a depreciation of over 1%. This has again impacted FII flows, which had turned positive early this month. Yesterday, FIIs sold equity worth Rs 4,206 crore, which might impact sentiment today.
"The big results from Reliance Industries today after market hours, and the results of the private banking majors on Saturday, can have an impact on the market next week. Private sector banks are expected to report good numbers."
(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.)
