Sensex rises over 100 points in early trade
Equity benchmark Sensex rose over 100 points in early trade on Thursday, tracking gains in major indices L&T, HDFC Bank and HCL Tech amid a largely positive trend in global markets. The 30-share BSE index was trading 111.50 points or 0.21 per cent higher at 53,015.55 in opening deals, while the broader NSE Nifty rose 31.30 points or 0.20 per cent to 15,885.25.
HCL Tech, Tech Mahindra, HDFC Bank, Dr Reddy’s and UltraTech Cement were the top gainers in the Sensex pack, rising over 3 per cent.
On the other hand, M&M, Asian Paints, Maruti, ITC, Titan and Infosys were among the laggards.
In the previous session, the Sensex was up 134.32 points or 0.25 per cent at 52,904.05 and the Nifty was up 41.60 points or 0.26 per cent at 15,853.95.
Foreign institutional investors (FIIs) were net sellers in the capital market as they sold shares worth Rs 1,303.95 crore on Wednesday, according to provisional exchange data.
VK Vijayakumar said, “The IT results so far, including for large companies like TCS and Infosys, indicate a strong order pipeline prompting companies to increase their revenue guidance by 14 to 17 per cent. This augurs well for the industry. and may invite further investment,” said VK Vijayakumar. Chief Investment Strategist at Geojit Financial Services.
However, Nifty is likely to face resistance around 15,900 as FIIs are frequent sellers at higher levels, he said, adding that retail activity in the mid- and small-cap space is high, as FIIs are selling heavily in large-caps.
Furthermore, global support to markets comes from comments by US Fed chief Jerome Powell that rates will remain near zero unless “inflation is persistent and materially high”. This has further encouraged the equity bulls, he added.
Elsewhere in Asia, shares in Shanghai, Seoul and Hong Kong were trading with gains in mid-session deals, while Tokyo was in the red.
Meanwhile, international oil benchmark Brent crude fell 0.76 per cent to $74.19 per barrel.
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