Equity benchmarks opened in positive territory on Friday, tracking a firm start indicated by GIFT Nifty, even as mixed global cues — a record-setting Dow Jones offset by a Nasdaq slide — kept investors cautious.
The Sensex opened at 78,152.34, against its previous close of 77,502.12, and was trading at 77,927.35 in early trade. The Nifty 50, which closed at 24,175.70 on Thursday, opened at 24,375.65 and was quoting at 24,312.30, up 136.60 points or 0.57 per cent, as of 9.17 AM.
Technology stocks continued their upward march, extending Thursday’s sharp rally. HCL Technologies was the top gainer on the Nifty, rising 4.30 per cent to ₹1,124.50, followed by Tech Mahindra, which climbed 3.35 per cent to ₹1,431.70. Wipro added 2.00 per cent to ₹177.48, while Infosys gained 1.98 per cent to ₹1,061.50. The gains came despite persistent selling in global semiconductor stocks overnight.
Rajesh Palviya, Head of Research, Axis Direct, noted that the rally was “driven by a sharp rebound in IT stocks, with Infosys soaring nearly 6 per cent and TCS gaining over 4 per cent” in Thursday’s session, with “Auto and Realty stocks” adding to the momentum.
However, Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, sounded a note of caution: …”The IT stocks are witnessing an uptrend triggered by low valuations. But the sector has no fundamental strength to sustain the rally.”
Outside IT, Hindalco Industries rose 2.77 per cent to ₹975.50, making it the third-biggest gainer on the Nifty, as softer crude prices and improving global risk sentiment supported metals.
On the losing side, Adani Enterprises fell 1.47 per cent to ₹3,130.80, the steepest decline on the index. Tata Motors Passenger Vehicles (TMPV) dropped 0.90 per cent to ₹342.85. NTPC slipped 0.45 per cent to ₹356.65, Adani Ports edged down 0.22 per cent to ₹1,879.00, and Power Grid Corporation declined 0.09 per cent to ₹287.95. PSU Banks and power sector stocks faced continued selling pressure.
Overnight in the US, the Dow Jones Industrial Average rallied 594 points, or 1.1 per cent, to a fresh record high, while the Nasdaq fell 0.8 per cent. The divergence reflected what Vikram Kasat, Head Advisory, PL Capital, described as “Wall Street shifting away from AI plays as part of a broader rotation into more defensive sectors.”
The iShares Semiconductor ETF shed 5.6 per cent overnight, led by losses in Teradyne, KLA, Entegris, Lam Research, and Marvell Technology — the second consecutive session of decline. US markets remain closed today for Independence Day.
Brent crude slipping below $71 per barrel — near a multi-month low — is providing a key support to Indian markets. Palviya noted that crude “at its lowest level since late February” reduces inflationary concerns for India as a major oil-importing economy.
Odds of a US rate hike have eased to 18 per cent from 29 per cent the previous day, following a softer-than-expected June jobs report. Ponmudi R, CEO of Enrich Money, said “softer-than-expected US jobs data has tempered expectations of near-term monetary tightening by the Federal Reserve, offering an additional boost to investor sentiment.”
On banking, Vijayakumar pointed to the FCNR(B) deposit scheme gaining traction, particularly from West Asia, with estimates suggesting it “may succeed in mobilising up to $60 billion,” which he said gives “deposit-starved leading banks” the ability to “significantly scale up their lending” — a fundamental positive for Bank Nifty.
Shrikant Chouhan, Head Equity Research, Kotak Securities, said …”24,075 would act as a key support zone. Above this level, the market could continue its positive momentum towards 24,250–24,375.” He added that “a weekly close above 24,350 would increase the probabilities of crossing 24,600 soon.”
India VIX fell 7.21 per cent to 12.29, its lowest close since February, while the Put-Call Ratio climbed to 1.28, signalling improving trader confidence heading into the session.