Synopsis
On January 24, the Indian benchmark indices opened positively, with Nifty Bank, auto, FMCG, and IT sectors leading the way. Despite some stocks dragging down the indices, the overall market sentiment remains optimistic, especially for the IT sector post Q3 earnings.Key Takeaways
- Indian indices opened higher for the third consecutive day.
- Nifty and Sensex both increased by 0.31 percent.
- FIIs have sold equities for 15 days straight.
- Nifty Oil and Gas emerged as a leading sector.
- Market experts advise caution due to volatility.
Mumbai, Jan 24 (NationPress) Indian benchmark indices commenced the day on a high note on Friday, marking the third consecutive day of gains this week, with the Nifty Bank, auto, FMCG, and IT sectors spearheading the morning's trade.
During the early session, the Nifty climbed by 0.31 percent to reach 23,277, while the 30-stock Sensex rose by 0.31 percent to 76,765. Out of the 12 sectors on the NSE, seven recorded gains, with Nifty Metal and Nifty Oil and Gas showing the most significant increases.
However, the broader market lagged behind its larger counterparts, with the BSE MidCap dipping by 0.12 percent and the SmallCap falling by 0.20 percent.
Key contributors to the rise on the Nifty 50 included ICICI Bank, Bharti Airtel, Infosys, and PowerGrid.
Conversely, Dr Reddy's Laboratories, Sun Pharmaceutical Industries, Apollo Hospitals Enterprise, Maruti Suzuki, and Kotak Mahindra Bank pulled down the benchmark index.
Market analysts suggest that the robust performance of the US market, with the S&P 500 reaching another record high and the 10-year US bond yield remaining strong at about 4.65 percent, will continue to impact the Indian market.
The Q3 earnings of IT firms and encouraging management commentary hint at a brighter outlook for the sector, marking it as a reliable investment option, they noted.
Among sectoral indices, Nifty Oil and Gas emerged as the top gainer, rising by 1 percent, followed closely by Nifty Metal and Realty, which increased by 0.9 percent and 0.6 percent, respectively. Meanwhile, Nifty Pharma was the biggest loser, declining by 1.6 percent.
Experts indicate that post a positive opening, the Nifty could find support at 23,100, followed by 23,000 and 22,800. On the upside, 23,300 is expected to act as an immediate resistance, with further resistance at 23,400 and 23,500.
Foreign institutional investors (FIIs) have remained net sellers for the 15th consecutive day, offloading equities worth Rs 5,462.52 crore on January 23. In contrast, domestic institutional investors purchased equities worth Rs 3,712 crore on the same day.
Given the ongoing volatility, traders are advised to proceed with caution, implement strict stop-loss measures, and refrain from holding long positions overnight unless the Nifty index maintains above the 23,500 level to manage risks effectively, as per Hardik Matalia from Choice Broking.
Additionally, the rupee opened 14 paise higher at 86.33 per dollar on Friday.
