Indian equity markets opened flat on Thursday due to mixed global cues, but IT stocks showed resilience, prompting experts to see buying opportunities amid cautious investor sentiment.
As of 9:40 AM, the Sensex recorded a modest gain of 31 points to reach 81,816, while the Nifty rose by 19 points to 25,071.
Despite the subdued opening, the overall market sentiment leaned positive.
On the National Stock Exchange (NSE), 1,134 stocks advanced, while 759 declined, indicating a slight tilt towards bullishness in the early hours of trading.
Smallcap and midcap stocks showed marginal buying interest, with the Nifty Midcap 100 index inching up by 21 points, or 0.04%, to 59,179, and the Nifty Smallcap 100 index gaining 46 points, or 0.23%, to stand at 19,369.
Sector-wise, the PSU Bank, financial services, pharmaceuticals, FMCG, and media indices led the gains, while the metal, energy, realty, and infrastructure sectors lagged behind.
In the Sensex pack, top performers included Tech Mahindra, HDFC Bank, Bajaj Finserv, Sun Pharma, Power Grid, NTPC, Nestle, ITC, Wipro, and Tata Motors. On the flip side, UltraTech Cement, Infosys, HCL Tech, Tata Steel, Maruti Suzuki, JSW Steel, and Axis Bank emerged as the major losers.
Experts See Buying Opportunities As IT Stocks Show Resilience Amid Weak Global Cues
Market experts noted that the weak global cues have presented buying opportunities in the domestic market, particularly in a resilient environment where steady upward movement is seen without significant spikes in valuations, particularly within the largecap segment.
“The consistent accumulation of IT stocks reflects growing confidence that the soft landing scenario in the US economy will soon trigger the execution of orders that IT companies have been holding,” analysts commented, highlighting the sector’s potential in the near term.
Globally, Asian markets exhibited a bearish trend, with Tokyo, Hong Kong, Bangkok, Shanghai, and Seoul all trading in the red, while Jakarta managed to stay in the green.
The US markets also closed on a negative note during Wednesday’s session, further dampening investor sentiment.
In terms of institutional activity, Foreign Institutional Investors (FIIs) turned net sellers on August 28, offloading equities worth Rs 1,347 crore.
In contrast, Domestic Institutional Investors (DIIs) continued their buying spree, purchasing equities worth Rs 439 crore on the same day.
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