The Sensex opened at 74,575.24, up 260 points or 0.35 per cent, while the Nifty rose 64 points or 0.28 per cent to 23,334.70, extending the recovery momentum seen in the previous session.
Among sectoral indices, Nifty Metal gained the most, rising 0.76 per cent in early trade, followed by Nifty Realty, which gained 0.74 per cent. Nifty Cement was up 0.55 per cent, while the Media index traded 0.47 per cent higher. Meanwhile, healthcare, auto, banking, pharma, energy and FMCG indices were also trading in positive territory, suggesting fairly broad-based participation in the day's gains beyond just the top-performing sectors.
IT Stocks Buck the Trend
In contrast, Nifty IT declined more than 1 per cent, while Nifty MidSmall IT & Telecom fell 0.40 per cent, marking a clear divergence between the day's leading and lagging sectors. From the Nifty index, Tata Motors Passenger Vehicles, TCS, Infosys, Tech Mahindra and HCL Technologies emerged as the top losers, declining up to 3 per cent in morning trade, with the IT majors in particular weighing on sentiment despite the broader market's positive tone.
Global Strength Supporting Domestic Sentiment
Analysts attributed part of the day's gains to resilience in the US market despite elevated bond yields, alongside expectations of strong corporate earnings supporting global equities more broadly. "The underlying strength of the economy is supporting the market which continues to be buoyant, and this strength of the mother market is supporting markets elsewhere," they said, framing the US market's performance as a key driver of positive sentiment percolating through to Indian equities.
IPO Boom Shifting Investor Focus
On the domestic front, experts noted that the ongoing boom in the primary market has shifted investor attention toward IPOs and listing gains, leaving some large-cap stocks in the secondary market comparatively depressed. "For long-term investors, this is an opportunity. Leading banks, capital goods majors, select automobiles and pharmaceutical stocks provide buying opportunities," according to them, suggesting that the current rotation of investor interest toward new listings may be creating selective value in more established large-cap names.
Nifty's Technical Setup
Technically, the broader market structure remains weak, with the Relative Strength Index (RSI) at 29.95 indicating oversold momentum for the index. "Immediate support for the Nifty is placed at 23,000-23,150, while resistance is seen at 23,350-23,450. A decisive move beyond the resistance zone could signal a stronger recovery, while a break below support may keep the corrective trend intact," the analysts said, outlining a fairly tight technical range within which the index's near-term direction is likely to be determined.
Institutional Flows
Foreign institutional investors (FIIs) remained net sellers on Thursday, offloading equities worth Rs 3,208 crore, according to provisional exchange data. Domestic institutional investors (DIIs), however, continued to provide support, buying equities worth Rs 3,617 crore, a pattern that has helped cushion the market against sustained FII selling in recent sessions.
Positive Overnight Global Cues
Global cues remained broadly positive heading into Friday's session. Overnight on Thursday, US markets ended higher, with the S&P 500 closing 1.14 per cent up and the tech-heavy Nasdaq rising 1.69 per cent, offering a strong lead-in for Asian and Indian markets at the start of the trading day.
Asian Markets Also Rally
In Asian markets, Japan's Nikkei was up nearly 2 per cent, while Hong Kong's Hang Seng gained almost 1 per cent. South Korea's KOSPI surged more than 2 per cent, reflecting a broadly positive risk-on sentiment across the region that likely contributed to the constructive tone seen in Indian markets at the open.
Commodity Prices Ease
On the commodities front, the international benchmark Brent crude declined 1 per cent to $103.61 per barrel, while US West Texas Intermediate (WTI) traded around $101 a barrel, down 0.77 per cent. The easing in crude oil prices adds a further supportive factor for Indian markets, given the country's significant dependence on oil imports and the corresponding impact of crude prices on domestic inflation and the currency.
