Indian equities open higher despite weak global cues

Indian equity benchmarks opened sharply higher on Tuesday, bucking weakness across global markets caused by elevated US bond yields and crude oil prices.

The Sensex began trading at 75,369.63, gaining 587.87 points, or 0.79 per cent. The Nifty opened 178.05 points, or 0.76 per cent, higher at 23,576.15.

Information technology stocks led the early rally, with the Nifty IT index surging more than 4 per cent. The Nifty MidSmall IT and Telecom index advanced nearly 2 per cent.

Among other sectors, the Nifty FMCG index gained 0.72 per cent and the Nifty Auto index rose 0.31 per cent. Media, energy and private banking shares also traded marginally higher.

Financial, metal and pharmaceutical stocks faced selling pressure. The Nifty Metal index declined 0.58 per cent, while the Nifty Financial Services Ex-Bank and Nifty MidSmall Financial Services indices fell 0.52 per cent and 0.5 per cent, respectively.

The Nifty Pharma index lost 0.37 per cent, while cement, healthcare, consumer durables and realty shares also traded in negative territory.

Kotak Mahindra Bank, Grasim Industries, Bharat Electronics, Shriram Finance and InterGlobe Aviation were among the leading losers on the Nifty 50, declining between nearly 1 per cent and 1.67 per cent.

Market experts said global equities were likely to remain under pressure after the yield on the 10-year US Treasury note touched the psychologically significant level of 5 per cent. Rising crude oil prices were also expected to weigh on the broader macroeconomic environment.

However, the continuing boom in India’s initial public offering market and the broader market’s outperformance were seen as supportive factors for domestic equities.

On the technical front, analysts said the Nifty’s recovery from the 23,260–23,000 zone indicated an attempt to move higher after nearing oversold territory. The rebound could take the index towards 23,720.

However, they cautioned that an inability to move decisively above 23,515, or a fall below the 23,260–23,000 range, could shift attention towards the lower band of 22,600–21,800.

With IANS inputs