Domestic stock markets opened higher on Thursday, with the Sensex jumping over 550 points and the Nifty reclaiming the 24,200 level as gains in IT and financial stocks lifted sentiment.
The BSE Sensex rose 554.88 points, or 0.72%, to 77,464.56 at around 9:36 am. The Nifty 50 gained 127.30 points, or 0.53%, to 24,205.60, after touching an early high of 24,225.45.
IT stocks were among the early gainers. Infosys rose over 2%, while TCS gained more than 1%. HCLTech and Tech Mahindra were also trading higher.
Financial stocks added to the gains, with HDFC Bank up 0.77%, Bajaj Finance rising 1.3%, Kotak Mahindra Bank gaining 1.32% and Shriram Finance advancing over 2%.
Eternal was the top gainer among the Sensex stocks, jumping 2.36%, while Wipro also gained nearly 1.5%.
On the other hand, metal stocks came under pressure, with Hindalco falling 1.6%. ONGC slipped over 1.5%, while Coal India and Max Healthcare were also among the early losers.
Reliance Industries was marginally lower, while Sun Pharma, NTPC and Power Grid also traded in the red.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the market appeared set for a short-term reversal after a steady decline over the past 12 trading sessions.
“The market is in oversold territory and a mild rally triggered by short-covering is likely,” he said, adding that the decline in US bond yields could create a positive environment for equity markets globally.
Vijayakumar said a significant trend was that while large-cap stocks were languishing, mid- and small-cap stocks were doing well, supported by revenue and earnings growth. He highlighted segments such as CDMO, precision engineering and power infrastructure, where management commentaries have remained positive.
“Part of the good news in these segments are already in the price, but there is more room for price appreciation,” he said.
He also flagged LIC receiving approval to buy up to 9.99% equity in HDFC Bank as a significant development.
The strong opening comes after the benchmark indices ended Wednesday’s session lower, with the Sensex falling 325.78 points and the Nifty losing 76.60 points amid concerns over rising crude oil prices and geopolitical uncertainty.
– Ends
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