Nifty, Sensex open on higher note amid positive global cues, IT shares rally

The stock markets began the week on a positive note owing to positive global cues.

Sensex surged 320.49 points, opening at 81,406.40, while Nifty climbed 92.15 points to open at 24,915.30. Nifty saw a majority of its constituent companies advance, with 32 stocks gaining and 17 declining while one stock remained unchanged. In Nifty, top gainers were ONGC, Wipro, Tech Mahindra, LTIMindtree, and TCS while top losers were Grasim, Apollo Hospitals, HDFC Life, ITC and Sun Pharma.

Ajay Bagga, a banking and market expert, said, “A strong market up move in the US markets following the Jackson Hole comments of Fed Chair Powell was expected to help the Asian markets rally as well. However, elevated Middle East tensions have enhanced geopolitical risk today and Asian markets are mixed.”

He added, “We expect Indian markets to shrug off this till the conflict is limited to extra-state actors like Hezbollah and not a direct action by Iran. We expect the Indian markets to cross previous all-time highs this week unless geopolitical risks lead to a risk off global selling which is still a low probability event.”

What about global markets?
This comes after US markets experienced a surge as the Nasdaq Composite rose 1.47 per cent to 17,877.79, S&P 500 increased 1.15 per cent to 5,643.61 and the Dow Jones Industrial Average gained 1.14 per cent to 41,175.08. The US Dollar Index (DXY) saw a decrease of 0.36 per cent, settling at 100.64.

Foreign Institutional Investors (FII) purchased shares worth ₹1,944.48 crore while Domestic Institutional Investors (DII) bought shares worth ₹2,896.02 crore.