Mumbai, Oct 23: Indian equity benchmarks opened higher on Friday, supported by strong buying in information technology (IT) stocks and positive domestic factors, even as weak global market cues weighed on investor sentiment.
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The BSE Sensex opened at 73,665.64, gaining more than 400 points, or 0.57 per cent. The NSE Nifty 50 started the session at 22,742.20, up 54.55 points, or 0.24 per cent.
IT Stocks Lead Market Gains
The technology sector emerged as the key driver of the morning rally, with the Nifty IT index rising nearly 3 per cent. The Nifty MidSmall IT & Telecom index also advanced by around 1 per cent, reflecting sustained buying interest in technology-related shares.
The Nifty Pharma and Nifty Healthcare indices traded marginally higher, providing additional support to the broader market.
However, selling pressure persisted in select sectors. The Nifty Metal, Nifty Realty and Nifty MidSmall Financial Services indices declined by up to 1 per cent.
Crude Oil Prices Remain a Concern
Market analysts cautioned that rising international crude oil prices could pose a significant challenge to the Indian economy and equity markets. Brent crude prices climbing to $114 per barrel have raised concerns about inflation, the country's import bill and corporate profitability.
On the positive side, the US 10-year Treasury yield declined sharply to 4.96 per cent, while the Indian rupee appreciated to 94.70 against the US dollar, according to the market figures cited by analysts. These developments could help moderate foreign institutional investor (FII) selling pressure.
IPO Funds May Boost Liquidity
Analysts also expect a potential liquidity boost following the allotment of shares in the Jio Platforms initial public offering (IPO).
Of the Rs 3.73 lakh crore reportedly committed to the IPO, more than Rs 3 lakh crore is expected to return to the financial system after the allotment process, potentially by Monday. The release of these funds could improve market liquidity and support equities in the coming week.
However, the extent of any market impact will depend on how investors redeploy the released funds and on prevailing domestic and international conditions.
Nifty Technical Outlook
Technical indicators presented a mixed picture for the benchmark index.
The Nifty's Relative Strength Index (RSI) stood at 43.98, above its average of 38.86, suggesting some improvement in momentum. Meanwhile, the Put-Call Ratio (PCR) eased to 0.82.
Analysts identified the 22,600–22,650 range as an immediate support zone for the Nifty, while resistance was seen between 22,900 and 23,000.
A sustained move above resistance could improve near-term sentiment, while a break below support may increase selling pressure.
FIIs Sell, Domestic Institutions Provide Support
Foreign institutional investors continued to remain net sellers on Thursday, offloading equities worth Rs 3,459 crore. Domestic institutional investors (DIIs), however, helped cushion the impact by purchasing shares worth Rs 2,891 crore on a net basis.
The divergence between foreign and domestic institutional flows remains an important factor influencing the direction of Indian equities.
Global Markets Weigh on Sentiment
Global market developments continued to pose challenges for investors. In the United States, the Nasdaq Composite fell 2.6 per cent on Thursday amid a technology sell-off linked to concerns surrounding artificial intelligence-related stocks.
Asian markets also opened lower on Friday, with Japan's Nikkei 225 declining around 1.7 per cent.
Despite these external headwinds, buying in Indian IT stocks and expectations of improving liquidity helped domestic benchmarks begin the session in positive territory.
Market Outlook
Indian equities may remain sensitive to movements in crude oil prices, foreign fund flows, currency fluctuations and global technology stocks. The anticipated return of IPO-related funds could provide near-term support, although sustained gains will depend on broader market conditions and investor confidence.
Investors are likely to monitor the Nifty's immediate support and resistance levels closely as the market seeks direction amid mixed domestic and international signals.
