• Indian equity indices opened positively on Thursday, influenced by encouraging cues from US and Asian markets.
• Sectoral indices showed mixed results with major gains in auto, metal, realty, financial services, energy, private banking, infrastructure, PSE, and oil and gas sectors.
• Foreign institutional investors sold equities worth Rs 4,562 crore on October 9, while domestic institutional investors bought equities worth Rs 3,508 crore.
• The Indian stock market shows signs of resilience and recovery, but remains volatile, advising investors to stay cautious and informed.

Sensex -comes-out-negative-aura-hovers-over-positive-trade-870531 class="internal-links" target=_blank>Indian equity indices opened in the green on Thursday, buoyed by encouraging cues from the US and Asian markets. As of 9.50 a.m., the Sensex was up by 93 points or 0.11 per cent at 81,560, while the Nifty was up by 29 points or 0.12 per cent at 25,011. The market trend in early trade was optimistic, with 1,689 shares on the National Stock Exchange (NSE) in the green and 475 shares in the red.

Sectoral Indices and Market Predictions

This positive trend was also reflected in midcap and smallcap stocks. The Nifty midcap 100 index rose by 334 points, or 0.56 per cent, to 59,423, and the Nifty smallcap 100 index increased by 138 points, or 0.73 per cent, to 19,002. Sectoral indices showed a mixed bag of results. Auto, metal, realty, financial services, energy, private banking, infrastructure, PSE, and oil and gas were the major gainers. In contrast, IT and pharma sectors experienced losses.

Hardik Matalia, a Derivative Analyst at Choice Broking, provided some insight into the market trends. He stated, After a positive opening, Nifty can find support at 24,950 followed by 24,850 and 24,700. On the higher side, 25,100 can be an immediate resistance, followed by 24,200 and 25,300. The Bank Nifty charts indicate potential support at 50,800, followed by 50,500 and 50,200. If the index advances further, 51,200 would be the initial key resistance, followed by 51,400 and 51,500.

Institutional Investors and Global Markets

In terms of institutional investors, foreign institutional investors (FIIs) sold equities worth Rs 4,562 crore on October 9, while domestic institutional investors bought equities worth Rs 3,508 crore on the same day. Asian markets were also trading in the green, with Tokyo, Shanghai, Hong Kong, Bangkok, and Seoul markets trading briskly. The US stock markets closed sharply on Wednesday.

Historically, the Indian stock market has shown resilience and an ability to bounce back from lows. For instance, in July 2024, the Sensex and Nifty 50 recovered from post-budget losses and added 0.9 per cent and 1.24 per cent, respectively, for the week, posting the eighth week of gains. This was their best weekly winning streak in the last 14 years (since 2010).

The frontline indices had been on a decline for the last week. The Sensex tumbled 1,303.66 points, or 1.60 per cent, while the Nifty declined 394.75 points, or 1.59 per cent, in five straight days of losses to Thursday. This was due to weaker-than-expected results from Reliance Industries, Wipro, Bajaj Finance, Axis Bank, and Nestle.

However, on Friday, the rupee recovered from its all-time low level and appreciated six paise to 83.72 (provisional) against the US dollar, on strength in the domestic markets and expectations of fresh foreign inflows. At the interbank foreign exchange market, the local unit opened at 83.72 and touched an intra-day high of 83.69 and a low of 83.73 against the dollar during the session.

The improving growth outlook in the US has been beneficial for Indian IT companies, which earn a significant share of their revenue from the country. Drug maker Cipla gained five per cent, powering the pharma index 2.3 per cent higher, after posting first-quarter profit above expectations, aided by higher sales.