Mumbai: Domestic equity benchmarks opened higher on Thursday, defying fragile sentiment amid weakness in technology stocks across the US and Asian markets.
Sensex opened at 72,965.80, up 183.91 points or 0.25 per cent, while Nifty started at 22,671.30, up 48.60 points or 0.21 per cent.
In early trade, sectoral performance was mixed. Nifty IT, Nifty FMCG, Nifty Auto and Nifty Private Bank were top gainers and increased up to almost 2 per cent.
On the other hand, Nifty Metal was the top laggard which declined 1 per cent. Similarly, PSU bank, consumer durables, pharmaceuticals and healthcare indices were traded lower.
Market experts said hotter-than-expected US inflation — which spiked to 3.7 per cent in September from 3.4 per cent in August — has increased the possibility of another rate hike by the US Federal Reserve in October.
The concern triggered big selling in US markets, with tech-heavy Nasdaq correcting 1.88 per cent, they added.
“The fear has spread to South Korea and Japan. Nikkei is down above 4 per cent and Kospi down more than 7 per cent. From the Indian market perspective, the correction in AI stocks is a positive,” according to the experts.
FIIs who have been selling Indian stocks and buying AI stocks will halt this trend.
Technically, Nifty formed a bearish-leaning candle, while RSI stood at 41.66, above its average of 32.01, indicating some recovery in momentum, according to analysts.
On Wednesday, FIIs remained net sellers and offloaded equities worth approximately Rs 1,857 crore, while DIIs provided strong support with net purchases of around Rs 2,670 crore.
Additionally, Wall Street ended lower on Wednesday as US inflation fueled rate-hike concerns, weighing on the Nasdaq and AI. Asian markets were also trading in red zone.
In addition, crude oil prices declined nearly 2 per cent as investors weighed Strait of Hormuz supply risks against US moves to ease shipping costs.
(IANS)
