Indian equity markets open higher; Nifty IT surges 3 pc

Mumbai, Oct 9 (IANS) Domestic equity benchmarks opened higher on Friday amid strong buying in information technology (IT) sector shares following an announcement by the US government on the Permanent Labor Certification Program (PERM).

Sensex started at 71,776.67, up 183.43 points or 0.26 per cent.

Meanwhile, Nifty began trading session at 22,314.95, up 83.15 points or 0.37 per cent.

Sector-wise, Nifty IT led gains, surging more than 3 per cent to 28,604.75 and hitting an intraday high in morning trade.

While Nifty MidSmall IT & Telecom also rose more than 2 per cent to 9,825.85.

Moreover, Nifty FMCG, Nifty Media, Nifty Healthcare, Nifty Realty, Nifty Private Bank surged up to 1 per cent in early deals.

Market experts said elevated crude price and high US bond yields continue to impact the market and have turned near-term structure to a strong sell on rally structure, adding that sustained FII selling has emboldened bears to go short even on fundamentally strong bluechips.

"Given the elevated crude prices and high US bond yields, FIIs are likely to continue selling in near term, irrespective of favourable valuations, particularly of large-caps," they said.

Stock market history shows crises are great opportunities to buy and the ongoing corrective phase has opened up opportunities for patient long-term investors to accumulate high-quality stocks.

On technicals, analysts said, "The 22,050 region which we had pencilled in at start of week but hoped not to see, is within touching distance, bringing 19,000 and 16,700 back in radar. But, being at lower Bollinger band, a swing higher is hoped for early in day. However, upside expectations will stay limited as long as held within 22,290-350 band, but a direct rise above same could call for 22,440-600. Downside marker for day may be placed near 22,140."

Additionally, global cues remain mixed as weakness in US technology stocks and elevated crude oil prices amid Middle East tensions continue to weigh on sentiment, while some easing in US bond yields offers limited relief.

In addition, foreign institutional investors (FIIs) remained aggressive net sellers on Thursday and offloaded equities worth Rs 12,943 crore, while domestic institutional investors (DIIs) provided support with net purchases of Rs 10,703 crore.

FIIs have sold equities worth Rs 36,210 crore through exchanges in October so far.

--IANS

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