Sensex jumps over 700 points, Nifty tops 24,160 as IT stocks lead market rally
Mumbai, July 10 (IANS) Indian benchmark equity indices opened sharply higher on Friday, tracking gains in global markets as a rally in chip stocks boosted investor sentiment, with information technology shares emerging as the biggest gainers.
During early trade, the Sensex was trading 701.73 points, or 0.91 per cent, higher at 77,443.55. The Nifty advanced 200.85 points, or 0.84 per cent, to 24,162.25.
Commenting on Nifty technical outlook, experts said that the 24,100–24,200 region is expected to act as the immediate resistance.
“A sustained breakout above this band would improve market sentiment and could support a recovery towards the 24,400 region,” as per the expert.
“On the downside, the 23,900 level remains the immediate support, followed by the 23,800 mark. A decisive break below 23,800 could accelerate selling pressure and drag the index towards the 23,600 region,” the analyst stated.
The rally was led by information technology stocks, with Tech Mahindra, HCLTech and Tata Consultancy Services featuring among the top gainers on the Nifty index.
The positive momentum extended to the broader market as well. The Nifty MidCap index gained around 0.7 per cent, while the Nifty SmallCap index rose 0.6 per cent in early trade.
Among sectoral indices, the Nifty IT surged nearly 3 per cent to emerge as the top performer, supported by strong gains in technology stocks. The Nifty Metal and Nifty Consumer Durables indices also traded firmly in positive territory.
On the other hand, defensive sectors underperformed the broader market, with the Nifty Pharma and Nifty Healthcare indices witnessing the steepest declines during the early session.
Experts said that market sentiment remained upbeat after a rally in global equities, driven by strength in chip-related stocks, lifted investor confidence and supported buying across domestic equities.
“Tensions in West Asia continue without any clarity of a resolution to the geopolitical crisis. However, interestingly, markets are largely ignoring these negative developments,” a market expert stated.
–IANS
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