Indian Stock Market Opens Higher Amid Positive Domestic Trends
Market Overview
Representational Image
Mumbai, Oct 23: On Friday, Indian equity indices began on a positive note, buoyed by favorable domestic indicators and a surge in information technology (IT) stocks, despite unfavorable global trends.
Market Performance
The Sensex commenced trading at 73,665.64, reflecting an increase of over 400 points or 0.57 percent. Meanwhile, the Nifty opened at 22,742.20, gaining 54.55 points or 0.24 percent.
The technology sector led the market's upward movement, with Nifty IT climbing nearly 3 percent in early trading. Additionally, Nifty MidSmall IT & Telecom saw a rise of 1 percent.
In contrast, indices such as Nifty Metal, Nifty Realty, and Nifty MidSmall Financial Services experienced declines of up to 1 percent.
Economic Indicators
Analysts noted that the rise in Brent crude prices to $4 poses a significant challenge for the economy and markets. However, the notable drop in the US 10-year yield to 4.96 percent and the rupee's appreciation to 94.70 against the dollar are seen as positive factors that could mitigate foreign institutional investor (FII) selling.
Furthermore, it is anticipated that over Rs 3 lakh crore from the recent Jio Platform IPO will re-enter the market following allotments by next Monday. This influx of liquidity could potentially boost market performance in the upcoming week.
Technical Analysis
For the Nifty index, the Relative Strength Index (RSI) was recorded at 43.98, above the average of 38.86, while the Put-Call Ratio (PCR) eased to 0.82. Analysts have identified immediate support levels at 22,600-22,650, with resistance anticipated at 22,900-23,000.
Foreign Investment Trends
On Thursday, foreign institutional investors were net sellers, offloading equities worth Rs 3,459 crore. In contrast, domestic institutional investors provided support with net purchases totaling Rs 2,891 crore.
In the US markets, the Nasdaq index fell by 2.6 percent on Thursday, driven by a sell-off in AI-related technology stocks. Similarly, Asian markets opened lower, with Japan's Nikkei index declining approximately 1.7 percent.