Indian equity markets started the day positively on Friday, with key indices showing nearly a 1% increase. Sectors like IT, metal, pharma, and chemicals saw strong buying activity. The Sensex opened at 78,152.34, up by 650 points, while the Nifty began around 200 points higher at 24,375.65.
Sector-wise, Nifty IT surged by almost 2%, and Nifty Metal gained 1.66%. Additionally, Nifty MidSmall IT & Telecom, Chemicals, and Pharma indices also saw gains of over 1%, 0.82%, and 0.72%, respectively. On the other hand, the Nifty PSU Bank index experienced a decline of 0.87%.
Among the Nifty 50 constituents, Tata Motors Passenger Vehicles (TMPV), NTPC, SBI, and Axis Bank were the major losers. The broader market remained strong, with Nifty Smallcap 50 and Nifty Smallcap 100 indices rising by 0.48% and 0.46%, respectively. Nifty 100 and Nifty 500 also saw gains of 0.46% and 0.41%.
India VIX, the volatility index, dropped by 1.62% to 12.09. Market experts suggest a cautiously optimistic near-term outlook. They highlight the importance of sustained strength above the 24,000 mark for the Nifty to maintain a positive trend. Immediate resistance levels are seen at 24,300 and 24,450, with 24,050 as a key support level.
Investors are advised to monitor the global technology sell-off closely. Any renewed weakness in semiconductor stocks could lead to profit booking after the recent sharp rally in domestic IT names. In the international market, Brent crude rose by 0.77% to $72.36 per barrel, while US West Texas Intermediate (WTI) crude saw a 0.68% increase but remained below $70 per barrel.
Asian markets showed positive trends, with shares trading higher, including the Nikkei, Hang Seng, and KOSPI rising by up to 3%. However, Wall Street closed lower due to selling in technology shares, with the Nasdaq declining by 0.80% and the S&P 500 ending flat.
