Mumbai, Sep 4: Indian stock markets started Friday’s session on a strong footing, with the Sensex gaining more than 500 points as investors stepped up buying in IT stocks. Positive signals from the domestic economy and firm global markets also helped improve sentiment.
The Sensex jumped 515 points, or 0.68 per cent, to 76,668, while the Nifty gained 51 points, or 0.22 per cent, to trade at 23,925 in early deals.
The broader market also remained positive, although gains were relatively modest. The Nifty Midcap 100 rose 0.03 per cent, while the Nifty Smallcap 100 advanced 0.49 per cent.
IT stocks emerged as the key drivers of the morning rally. The Nifty IT index gained 0.65 per cent, making it the best-performing sectoral index. Realty stocks also attracted buying interest, with the sectoral index rising 0.50 per cent.
The market mood was mixed across other sectors. The consumer durables index fell 0.50 per cent, making it one of the weakest performers during early trade.
Investors also remained focused on the health of the Indian economy. Strong GST collections, steady automobile sales and continued credit growth are providing some comfort to the market despite concerns over global interest rates and commodity prices.
Rising bond yields continue to pose a challenge for equities globally. US Treasury yields remain elevated, while bond yields in Japan and the UK have also moved higher. India’s 10-year government bond yield is trading close to the 7 per cent mark.
Oil prices are another area of concern. Brent crude was trading around $96-$97 a barrel, keeping pressure on market sentiment. Ongoing geopolitical tensions involving the US and Iran could further influence crude prices and increase volatility in equity markets.
Global cues, meanwhile, were supportive. Asian markets opened largely higher after Wall Street ended the previous session with strong gains. Japan’s Nikkei rose 1.14 per cent, Hong Kong’s Hang Seng gained 2.09 per cent, and South Korea’s Kospi advanced 1.31 per cent. Shanghai and Shenzhen also traded in positive territory.
On Wall Street, the Nasdaq climbed 1.4 per cent, while the S&P 500 rose 1.06 per cent and the Dow Jones gained 1.18 per cent in the previous session.
For traders, the Nifty’s immediate support is seen around 23,800-23,850, while the 24,050-24,100 zone could act as a resistance area. In the Bank Nifty, support is placed around 57,000-57,200, with resistance near 57,800-58,000.
Institutional activity remained mixed on Thursday. Foreign institutional investors sold equities worth Rs 2,346 crore, while domestic institutional investors bought shares worth Rs 4,977 crore.
With domestic economic indicators remaining encouraging and global markets providing support, investors are likely to track IT stocks, crude oil prices, bond yields and geopolitical developments closely during Friday’s trading session.