Sensex, Nifty rise for 5th day as IT stocks gain and FIIs return

The BSE Sensex rose 89.69 points, or 0.11%, to 78,374.76, while the NSE Nifty50 gained 38.90 points, or 0.16%, to trade at 24,469.25 as of 9:45 am.

In Short

• Benchmark indices rise for fifth consecutive session
• Titan leads Sensex gainers with 3.13% increase
• Nifty IT index up 1.65%, mixed sectoral performance

Benchmark equity indices opened marginally higher on Tuesday, extending their winning streak for a fifth straight session, as investors continued to cheer improving corporate updates, returning foreign investor inflows and lower crude oil prices.

The BSE Sensex rose 89.69 points, or 0.11%, to 78,374.76, while the NSE Nifty50 gained 38.90 points, or 0.16%, to trade at 24,469.25 as of 9:45 am.

The rally was supported by gains in information technology stocks, while investors also remained encouraged by signs of foreign portfolio investors (FPIs) returning as buyers after months of sustained selling.

IT STOCKS LEAD, TITAN TOP SENSEX GAINER

Titan emerged as the top Sensex gainer, rising 3.13%. Infosys climbed 2.59%, Eternal gained 1.53%, HCLTech advanced 1.26%, Tech Mahindra rose 1.15% and TCS gained 1.14%, helping the Nifty IT index rise 1.65%.

Among other gainers, Axis Bank rose 0.73%, SBI gained 0.67%, Adani Ports advanced 0.57%, Bajaj Finserv added 0.52%, HDFC Bank climbed 0.41%, ICICI Bank rose 0.21%, while Sun Pharma and Maruti Suzuki also traded higher.

On the losing side, Trent dropped over 10% after adjusting for its corporate action. LT declined 1.26%, BEL fell 1.06%, IndiGo lost 0.97%, ITC slipped 0.71%, NTPC fell 0.53%, Tata Steel lost 0.45%, Kotak Mahindra Bank declined 0.42%, while Reliance Industries and M&M traded marginally lower.

MIXED TREND ACROSS SECTORS

Sectoral performance remained mixed despite the positive undertone in benchmark indices.

The Nifty IT index led the gains, rising 1.65%. Nifty Pharma gained 0.30%, Nifty PSU Bank rose 0.28%, Nifty Healthcare Index added 0.28%, Nifty Financial Services 25/50 climbed 0.20%, Nifty MidSmall IT & Telecom gained 0.17%, Nifty Private Bank rose 0.14%, Nifty MidSmall Healthcare added 0.11%, Nifty Oil & Gas edged up 0.01% and Nifty500 Healthcare gained 0.26%.

Among the laggards, Nifty MidSmall Financial Services fell 0.85%, Nifty Chemicals declined 0.75%, Nifty Media slipped 0.65%, Nifty Metal lost 0.60%, Nifty Consumer Durables fell 0.46%, Nifty Realty declined 0.37%, Nifty FMCG slipped 0.34%, Nifty Financial Services Ex-Bank fell 0.29%, while Nifty Auto traded 0.12% lower.

BROADER MARKETS SEE PROFIT BOOKING

Broader markets were mixed in early trade.

The Nifty100 gained 0.03%, while the Nifty200 slipped 0.07%, Nifty500 fell 0.11%, Nifty Midcap50 declined 0.37%, Nifty Midcap100 lost 0.47% and Nifty Smallcap100 fell 0.35%.

India VIX edged up 0.06%.

LOWER CRUDE, FII BUYING SUPPORT MARKET

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the reversal in crude oil prices and foreign investor flows has improved the market outlook.

"There are distinct signs of an uptrend in the market. Two factors which were weighing on Indian markets - the crude price hike and sustained FPI selling - are now behind us and have reversed. Crude is back to the pre-war level and FPIs have turned buyers. The FPI buying is not yet a strong trend, but the fact that they have stopped selling and turned buyers is a significant shift, which is likely to sustain supported by fundamentals," he said.

He added that strong June auto retail sales indicate the economy's growth momentum remains intact.

"The sharp decline in crude will keep inflation in check, which, in turn, will enable the RBI to continue with the low interest regime. This means, the uptrend in the auto industry and financials, particularly banking, will continue supported by the low interest regime and impressive credit growth running above 17%," Vijayakumar said.

"These two sectors have the potential to lead the next leg of the rally, which is likely to be driven more by large caps. Apart from autos and financials, oil and gas and telecom majors also will support the rally. Retail buying will lift the broader market, too," he added.

(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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