The S&P BSE Sensex was up 141.49 points to 62,014.11 at around 9:37 am, while the NSE Nifty 50 was trading 37.30 points higher at 18,358.45.
By Koustav DasBenchmark stock market indices opened higher on Friday despite weak global cues amid possibilities about a deal to settle the US debt ceiling issue.
The S&P BSE Sensex was up 141.49 points to 62,014.11 at around 9:37 am, while the NSE Nifty 50 was trading 37.30 points higher at 18,358.45. Broader market indices also opened on a positive note amid a drop in volatility after F&O expiry day.
Sectoral indices were mixed in early trade, with banks and financial services in negative territory. Nifty IT, Nifty FMCG, Nifty Auto and Nifty Metal were among the indices that managed to gain.
Reliance was the top gainer on the Nifty 50, rising nearly 1.5 per cent. This was after its wholly-owned subsidiary Reliance Retail Ventures completed the acquisition of 51 per cent controlling stake in Lotus Chocolate Company.
Some of the other gainers on the index were Maruti, Tech Mahindra, UPL, Tata Consumer Products and Wipro. On the other hand, the top losers were ONGC, Grasim, PowerGrid, Sun Pharma and Axis Bank.
Domestic stock markets have been under the pump for the past few sessions due to a mix of factors, including profit booking and weak global cues. However, analysts believe that once a deal is reached in the ongoing US debt ceiling talks, markets will witness a strong rally and will get support at higher levels.
“With the global uncertainty, Indian markets are trading in a range of 18050-18450 and a breakout on any side can give big moves. We anticipate a breakout on higher side as Flows from FII’s and DII’s are positive. Hence, buying on every dip should be a trading strategy with a strict SL of 18050 on closing basis,” said Deven Mehata, research analyst at Choice Broking.
On the technical side, he said before the start of the trading session that 18,350 would be the initial key resistance level to watch out for if the Nifty 50 advances. “If the index advances, 18,350 would be the initial key resistance level to watch out for, followed by 18,400 and 18,450,” Mehata added.
Another factor that seems to be boosting sentiments on the domestic stock markets is sustained buying by foreign institutional investors. It may be noted that FIIs bought shares worth Rs 589.10 crore, while domestic institutional investors purchased shares worth Rs 338.44 crore on May 25.
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