The domestic benchmark indices opened higher on Thursday amid mixed global cues, with buying seen in the pharmaceutical, automotive and IT sectors in early trading.
At approximately 9:29 am, the Sensex was trading 268.8 points, or 0.33 per cent, higher at 81,267.09, while the Nifty added 82.75 points (0.34 per cent) to reach 24,702.95.
The Nifty Bank was down 29.70 points, or 0.05 per cent, at 55,647.15. The Nifty Midcap 100 index was trading at 58,188, having risen 263.35 points (0.45 per cent). The Nifty Smallcap 100 index was at 18,398.75 after climbing 141.65 points (0.78 per cent).
According to analysts, the Nifty ended higher on Wednesday and the India VIX fell by nearly 5 per cent, a development that bulls would have liked to see.
“For the Nifty, 24,462 remains intact and that’s keeping optimism alive. Should this level break, the market will most likely drop to its key support at 23,800. Short-term resistance sits between 24,760 and 24,882. Globally, stock bulls have tailwinds,” said Akshay Chinchalkar, Head of Research at Axis Securities.
Meanwhile, in the Sensex pack, Eternal, PowerGrid, M&M, HDFC Bank, HCL Tech, TCS, IndusInd Bank and Kotak Mahindra Bank were the top gainers. Conversely, Nestle India, Titan, Bajaj Finance, Tata Motors and Tech Mahindra were the top losers.
According to analysts, both geopolitical and economic news are likely to weigh on markets in the near term.
“The major economic news is the sharp dip in the US ISM PMI data. This indicates that the US economy is slowing down sharply. The US 10-year bond yield has declined to 4.36 per cent and, given the slowing US economy, is likely to trend lower,” according to Dr V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd.
“This will turn out to be good for emerging markets (EMs) like India in the medium term. ‘Buy on dips’ continues to be the ideal strategy for now. Rate-sensitive stocks will be preferred in view of the expected rate cut by the RBI MPC,” said experts.
In the Asian markets, Hong Kong, Bangkok, Seoul, China and Jakarta were trading in the green, whereas only Japan was trading in the red.
In the last trading session in the US, the Dow Jones closed at 42,427.74, down 91.90 points (0.22 per cent). The S&P 500 ended with a gain of 0.44 points (0.01 per cent) at 5,970.81, and the Nasdaq closed at 19,460.49, up 61.53 points (0.32 per cent).
On the institutional front, foreign institutional investors (FIIs) were net buyers, purchasing equities worth ₹1,076.18 crore on 4 June, while domestic institutional investors (DIIs) purchased equities worth ₹2,566.82 crore.
(IANS)