Sensex rises 340 points, Nifty above 25,400 as auto, bank stocks lead gains

Mumbai, Oct 16 (IANS) Equity markets opened higher on Thursday, supported by stock-specific action as companies continue to announce their Q2 results.

At the opening bell, the Sensex climbed 340 points, or 0.41 per cent, to trade at 82,945. Similarly, the Nifty rose 105 points, or 0.41 per cent, to 25,428.

"From a technical perspective, a sustained move above 25,450 could pave the way for a rally toward 25,500. On the downside, immediate support lies at 25,200 and 25,150, which may serve as potential entry points for long trades," market experts said.

Among the major gainers on the Sensex were Axis Bank, Adani Ports, Titan, Kotak Bank, Mahindra & Mahindra, BEL, Tata Motors, NTPC, and HCL Tech. On the other hand, Infosys, Tech Mahindra, TCS, Tata Steel, and Sun Pharma were among the laggards.

In the broader market, the Nifty MidCap index was up 0.23 per cent, while the Nifty SmallCap index gained 0.56 per cent, showing continued investor interest in mid- and small-cap stocks.

Sector-wise, the Nifty Auto and Nifty Private Bank indices led the gains with a rise of 0.8 per cent each, followed by the Nifty Realty index, which was up 0.6 per cent. The Nifty IT index, however, was the only one in the red, slipping 0.14 per cent amid mixed performance by technology stocks.

Analysts said that the latest comments from the US administration indicate reduction in the India-US trade tensions and points to the possibility of a US-India trade deal in the next few weeks.

Foreign Institutional Investors (FIIs) were net buyers of equities worth Rs 68 crore on October 15, while Domestic Institutional Investors (DIIs) purchased equities worth Rs 4,650 crore on the same day, providing support to the broader market.

"In the current environment of heightened volatility and mixed market cues, traders are advised to maintain a cautious buy-on-dips approach, particularly when using leverage. Booking partial profits during rallies and maintaining tight trailing stop-losses is recommended to manage risk effectively," they added.

"Fresh long positions should be considered only if the Nifty sustains above the 25,500 mark. While the broader market undertone remains cautiously bullish, close monitoring of key technical levels and global developments will be crucial in the sessions ahead," experts mentioned.

--IANS

pk