Mumbai, July 31 (IANS) Indian equity benchmark indices opened on a positive note on Friday, supported by gains in financials, pharma and auto stocks amid positive global cues and continued FII buying in the domestic market.
Sensex opened at 77,998.66, up 70.51 points or 0.09 per cent, while Nifty rose 44.30 points or 0.18 per cent to 24,361.45.
Among the sectoral indices, Nifty Financial Services Ex-Bank emerged as top gainer and increased almost 1 per cent, followed by Nifty Pharma, Nifty Auto, Nifty Healthcare, Nifty Metal and Nifty PSU Bank which gained up to about 0.8 per cent.
On the other hand, IT stocks came under heavy selling pressure, with Nifty IT plunging 3 per cent. Nifty MidSmall IT & Telecom also declined 1.41 per cent, while FMCG slipped 0.17 per cent.
According to analysts, heightened volatility has become a defining feature of global equity markets, particularly in the US and South Korea, where technology stocks have been witnessing sharp swings in response to quarterly earnings, expectations and speculative trading.
“In South Korea, particularly, volatility is excessive. Two stocks in Kospi — Samsung and SK Hynix — which account for 52 per cent of Kospi’s market capitalisation have been moving up and down sharply. In early trade this morning, Kospi is up by 16 per cent, driven by a 25 per cent spike in Samsung and a 21 per cent surge in SK Hynix,” they said.
They further noted that such double-digit moves at the index level are rare and could make institutional investors cautious.
“India is a stable market and the downside risks are limited now, particularly in largecaps where valuations are fair and growth prospects are good,” the analysts added.
Meanwhile, foreign institutional investors (FIIs) have turned net buyers in recent sessions, purchasing equities worth a cumulative Rs 7,360 crore over the last three trading days.
The international oil benchmark, Brent crude, declined nearly 2 per cent to $85.27 per barrel, while US West Texas Intermediate (WTI) crude fell more than 2 per cent to $81.60 per barrel.
In Asia, markets traded mostly higher, with Japan’s Nikkei surging nearly 4 per cent and South Korea’s Kospi jumping over 14 per cent. Hong Kong’s Hang Seng, however, was marginally lower.
Moreover, Wall Street ended higher, with the S&P 500 gaining 1.66 per cent and the Nasdaq advancing 2.79 per cent.
–IANS
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