Sensex, Nifty open higher as IT stocks lead gains; investors await Q1 earnings

The S&P BSE Sensex rose 184.38 points to 77,369.81, while the NSE Nifty50 gained 42.40 points to 24,120.90 as of 9:30 am.

In Short

• Nifty IT led gains, up 1.49%, financials mixed
• Crude prices stable, Brent at $84.61 per barrel
• Earnings season to guide market direction soon

Benchmark stock market indices opened higher on Thursday, led by gains in IT stocks, as stable crude oil prices and steady global markets supported investor sentiment while focus shifted to the ongoing June quarter earnings season.

The S&P BSE Sensex rose 184.38 points to 77,369.81, while the NSE Nifty50 gained 42.40 points to 24,120.90 as of 9:30 am.

Market sentiment remained supported by easing volatility and a stable global backdrop, although investors continued to monitor developments in the Middle East. Brent crude slipped 0.40% to $84.61 per barrel, while WTI crude fell 0.25% to $79.40, reducing concerns over a further spike in energy prices.

The rupee opened largely unchanged at 96.2475 against the US dollar, compared with its previous close of 96.2550.

IT STOCKS OUTPERFORM; BROADER MARKET MIXED

Among sectoral indices, Nifty IT emerged as the top performer, rising 1.49%, followed by Nifty Consumer Durables (1.74%), Nifty MidSmall IT & Telecom (1.09%), Nifty Chemicals (0.67%), Nifty Auto (0.63%) and Nifty FMCG (0.38%).

On the other hand, financial stocks traded mixed. Nifty Financial Services Ex-Bank fell 0.94%, Nifty MidSmall Financial Services declined 1.17%, while Nifty Realty slipped 0.66%.

The broader market was largely muted. Nifty 100 gained 0.12%, Nifty 200 rose 0.06% and Nifty 500 added 0.05%, while the Nifty Midcap 100 and Nifty Smallcap 100 traded marginally lower. India VIX fell 2.33% to 12.96, indicating easing volatility.

Among Sensex constituents, HCLTech topped the gainers with a rise of 2.32%, followed by Mahindra & Mahindra (1.49%), Tech Mahindra (1.30%), Infosys (1.30%), Maruti Suzuki (1.18%) and Titan (1.03%).

On the losing side, Adani Ports declined 0.50%, Axis Bank fell 0.41%, Bajaj Finserv slipped 0.33%, Sun Pharma lost 0.21% and HDFC Bank edged down 0.17%.

EARNINGS TO DRIVE MARKET DIRECTION

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said the market is likely to remain range-bound with a positive bias as investors await a fresh set of corporate earnings.

"With no major changes in crude prices and global markets holding steady, our market is likely to trade in a narrow band with a positive bias. With many companies reporting their Q1 results in the coming days, the market is likely to respond to the results.

"Financials—both banks and NBFCs—are likely to report a good set of numbers aided by robust credit growth now running at 18%. Automobiles is a sector to watch closely since the growth numbers for Q1 would be impressive and the sector continues to exhibit momentum, aided by GST cuts and easy availability of finance. Most segments of the sector—cars, SUVs, two-wheelers, commercial vehicles and exports—are doing well. Digital platform companies, too, will be reporting good growth numbers. Announcement of a bonus issue by Paytm at its July 20 board meeting is an important development.

"Platform companies which have turned profitable and continue to grow impressively will be rewarded by the market."

(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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