Mumbai: Domestic equity markets opened higher on Friday tracking positive global cues and amid buying in metal, real estate and cement sectors stocks.
Sensex opened at 74,575.24, up 260 points or 0.35 per cent, while Nifty rose 64 points or 0.28 per cent to 23,334.70.
Among sectoral indices, Nifty Metal gained the most and rose 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 and Media trading 0.47 per cent higher.
Meanwhile, healthcare, auto, banking, pharma, energy and FMCG indices were also trading higher.
On the other hand, Nifty IT declined more than 1 per cent, while Nifty MidSmall IT & Telecom fell 0.40 per cent.
From the Nifty index, Tata Motors Passenger Vehicles, TCS, Infosys, Tech Mahindra and HCL Technologies were top losers and declined up to declined up to 3 per cent in morning trade.
Analysts said resilience in the US market despite elevated bond yields and expectations of strong corporate earnings have supported global equities.
“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.
On the domestic front, experts said the ongoing boom in the primary market has shifted investor attention towards IPOs and listing gains, leaving some large-cap stocks in the secondary market 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.
Technically, the broader market structure remains weak, while the RSI at 29.95 indicates oversold momentum.
“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.
In addition, foreign institutional investors (FIIs) remained net sellers on Thursday, offloading equities worth Rs 3,208 crore, according to provisional exchange data. While domestic institutional investors (DIIs) continued to provide support and bought equities worth Rs 3,617 crore.
Additionally, global cues remained positive.
Overnight on Thursday US markets ended higher as the S&P 500 closed 1.14 per cent higher and the tech-heavy Nasdaq rose 1.69 per cent.
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.
On the commodities front, international benchmark Brent crude declined 1 per cent to $103.61 per barrel, while US West Texas Intermediate (WTI) was around $101 a barrel, down 0.77 per cent.
(IANS)
