Sensex, Nifty Open Higher as IT Stocks Rally on US-India Trade Deal Buzz.
Indian equity markets opened higher on Wednesday, led by a sharp uptick in IT stocks amid optimism over a potential trade agreement between India and the United States.
At 9:28 am, the BSE Sensex rose 103.13 points to 83,800.42, while the Nifty50 climbed 21 points to 25,562.80.
IT, Pharma Lead Gains; Bajaj Finserv, Asian Paints Drag
IT and pharma stocks were the early drivers of market momentum. Infosys led the gainers with a 1.79% jump, followed by TCS (+0.93%), Sun Pharma (+0.74%), Tata Steel (+0.72%), and NTPC (+0.71%).
On the flip side, Bajaj Finserv declined 1.09%, making it the top laggard, followed by Asian Paints (-0.95%), Bharat Electronics (-0.71%), Bajaj Finance (-0.59%), and Eicher Motors (-0.54%).
Sectoral Snapshot: IT Outperforms, FMCG Slips
Sectorally, Nifty IT surged 1.03%, topping the charts, supported by strong buying in frontline tech stocks. Other gainers included:
- Nifty Metal: +0.52%
- Nifty PSU Bank: +0.26%
- Nifty Oil & Gas: +0.23%
- Nifty Financial Services & Private Bank: +0.18%
- Nifty Auto: +0.16%
Meanwhile, defensive sectors like FMCG (-0.25%), Realty (-0.21%), and Healthcare (-0.06%) traded in the red.
Volatility edged lower, with India VIX down 0.29%, reflecting stable market sentiment.
Analysts Caution Against Overoptimism
Despite the early gains, analysts remain wary of overstretched valuations and weak underlying fundamentals.
“Optimism over a US-India trade deal may temporarily lift markets, but the lack of earnings momentum and soft June GST and auto sales data could cap the upside,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He also warned that while the U.S. economy remains resilient, the Federal Reserve’s hawkish stance and absence of a rate cut could restrain global market enthusiasm.
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