Sensex, Nifty Open Higher Despite Mixed Global Cues; IT Stocks Lead Gains

Indian benchmark indices opened higher on Thursday despite mixed global cues, supported by buying in information technology stocks and optimism following softer-than-expected US inflation data that strengthened expectations of a less hawkish Federal Reserve.

At around 9:15 am, the Sensex was up 225.87 points, or 0.29%, at 77,411.30, while the Nifty advanced 67.30 points, or 0.28%, to 24,145.80. Market breadth remained positive, with 1,543 stocks advancing against 742 declines, while 144 shares remained unchanged.

HCL Technologies, Infosys, Tech Mahindra, Hindalco and Wipro were among the top gainers on the Nifty, while SBI Life Insurance, Grasim Industries, ONGC, Bajaj Finserv and Eicher Motors were the major laggards.

Wall Street ended higher overnight after softer-than-expected US inflation data revived hopes that the Federal Reserve could adopt a less aggressive policy stance later this year. A strong start to the US earnings season also lifted investor sentiment.

However, Asian markets remained under pressure. Japan's Nikkei and South Korea's Kospi declined sharply as investors remained cautious over elevated geopolitical tensions in West Asia and concerns surrounding artificial intelligence-related technology stocks. South Korea's Kospi fell sharply, with Samsung Electronics and SK Hynix leading losses after renewed volatility in chipmaker shares and concerns over leveraged exchange-traded funds linked to the sector.

Information technology stocks provided the biggest support to the domestic market, with HCL Technologies, Infosys, Tech Mahindra and Wipro trading among the top gainers. The gains came despite weakness in several global technology stocks, as investors continued to favour Indian IT companies following encouraging quarterly earnings and expectations of improving demand in the second half of the financial year.

Crude Prices, Geopolitical Risks Remain Key Monitorables

Investor sentiment, however, remained cautious as crude oil prices stayed elevated amid continuing tensions in West Asia.

Brent crude futures traded at $84.79 per barrel, marginally lower during early trade, while US West Texas Intermediate crude hovered around $79.57 per barrel. On the Multi Commodity Exchange (MCX), August crude oil futures traded higher at ₹7,657.

The International Monetary Fund has warned that any prolonged disruption in the Middle East could pose risks to global energy supplies and inflation, prompting investors to avoid aggressive positions despite the positive opening in domestic equities.

Lower Volatility Indicates Stable Market

On the derivatives front, India VIX eased to 13.27, indicating relatively lower market volatility compared with recent sessions. Option chain data suggested strong support for the Nifty around the 24,000 level, while immediate resistance was seen near 24,200, pointing to a range-bound but positive trading session.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the market is likely to remain range-bound with a positive bias in the absence of any major change in crude oil prices or global market conditions.

"With no major changes in crude prices and global markets holding steady, our market is likely to trade in a narrow band with a positive bias. With many companies reporting their Q1 results in the coming days, the market is likely to respond to the results," he said.

According to Vijayakumar, financials, including banks and NBFCs, are expected to report healthy quarterly numbers supported by robust credit growth, which is currently running at around 18%.

He also identified automobiles as a sector to watch, citing strong sales momentum across passenger vehicles, SUVs, two-wheelers, commercial vehicles and exports, aided by GST cuts and easy availability of finance.

Vijayakumar added that digital platform companies are also expected to post healthy growth, while Paytm's proposed bonus issue, scheduled to be considered at its July 20 board meeting, is another development that could remain in focus.