Sensex, Nifty open in green as IT and auto stocks rise; Bajaj Auto gains 4%

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Benchmark stock market indices opened higher, extending their gains from the last trading session, helped by a rise in IT and auto sector stocks in early trade.

The S&P BSE Sensex added 221 points to 76,122.41, while the NSE Nifty50 gained 66.40 points to 23,023.65 as of 9:35 AM. Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that the recovery in the market witnessed yesterday can continue with resilience in fairly priced financials.

“However, a sharp rally is unlikely since FIIs will sell at higher levels. The market will be looking forward to positive cues in the Budget. The Fed decision today is unlikely to influence the market since no change in policy is expected from this meeting,” he added.

In today’s early trade, auto and information technology stocks led the gainers while consumer goods faced some selling pressure.

Bajaj Auto emerged as the top performer, surging 3.39%, while Bharat Electronics Limited (BEL) showed strong momentum with a 2.58% rise. Trent Limited continued its upward trajectory, gaining 2.29%.

Two-wheeler manufacturer Hero MotoCorp advanced by 1.89%, and Tata Steel rounded off the gainers with a 1.76% increase. On the losing side,

Tata Consumer Products led the declines, dropping 1.30%, followed by Hindustan Unilever which slipped 0.62%. Britannia Industries dipped by 0.55%, while Axis Bank fell 0.51%. ITC shares saw a modest decline of 0.47%.

“YTD Nifty is down 3.3% while Nifty Midcap is down 9.1% and Nifty Small cap is down 14.71%. The takeaway from this important data is that valuations are reverting to mean. This trend will make the market healthy and is likely to continue. Correction in the overvalued broader market is desirable,” said Vijayakumar.

Almost all sectoral indices were trading in positive territory, with only one sector in the red. Bucking the trend, Nifty FMCG was the sole loser, declining 1.01% amid profit booking in consumer goods stocks.

The Nifty Midsmall IT & Telecom sector led the gainers, jumping 2.53%, while Nifty Media showed strong momentum with a 2.07% increase. The technology sector had a good day as Nifty IT climbed 1.97%.

Auto stocks maintained their strength with Nifty Auto rising 1.33%, matching the gains in Nifty Metal which also added 1.33%.

The Nifty Consumer Durables index showed decene performance, gaining 1.51%, while Nifty Midsmall Financial Services advanced by 1.47%. The Nifty Financial Services Ex-Bank index rose 1.41%, and Nifty Realty moved up by 1.15%.

Banking indices showed modest gains with Nifty PSU Bank rising 0.80% and Nifty Bank adding 0.13%. Healthcare-related indices performed well, with Nifty Midsmall Healthcare up 0.89% and Nifty Healthcare Index gaining 0.66%. The oil and gas sector also participated in the rally with Nifty Oil & Gas rising 0.72%.

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