Sensex, Nifty Rise in Early Trade on IT Buying and Strong FII Inflows
Mumbai, February 26: The benchmark equity indices opened higher on Thursday, supported by buying in information technology stocks and sustained foreign fund inflows.The 30 share BSE Sensex climbed 303 points in early trade to 82,579.16, extending gains from the previous session. The 50 share NSE Nifty advanced 85.1 points to 25,567.60 during the initial trading hours.
IT Stocks Lead Gains
Among the top performers in the Sensex pack were Tech Mahindra, Infosys, HCL Tech and Tata Consultancy Services, reflecting strong interest in IT counters. Maruti also featured among the early gainers.On the other hand, InterGlobe Aviation, UltraTech Cement, Axis Bank and ICICI Bank were among the laggards in early trade.
Strong Institutional Buying Supports Sentiment
Market sentiment was bolstered by fresh institutional inflows. Foreign Institutional Investors purchased equities worth Rs 2,991.64 crore on Wednesday, according to exchange data. Domestic Institutional Investors also remained net buyers, acquiring shares worth Rs 5,118.57 crore.Ponmudi R, CEO of Enrich Money, said that strong buying by both FPIs and DIIs in the previous session is likely to provide comfort to investors. He added that domestic fundamentals remain stable and sectoral rotation is helping the indices absorb periodic profit booking at higher levels.
Global Cues and Commodity Trends
In Asian markets, South Korea’s Kospi and Japan’s Nikkei 225 were trading in positive territory, while Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index were quoting lower.The US markets ended higher on Wednesday, lending support to domestic equities.
In commodities, Brent crude, the global oil benchmark, rose 0.25 percent to USD 71.03 per barrel.
On Wednesday, the Sensex had settled 50.15 points or 0.06 percent higher at 82,276.07, while the Nifty gained 57.85 points or 0.23 percent to close at 25,482.50.
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