Nifty, Sensex open strong as all sectors begin in green; TCS, Adani Enterprises in focus

L&T, NTPC, Bharat Electronics, Axis Bank, and Bajaj Auto were the top gainers on the Nifty.

After a choppy session, benchmark indices Nifty and Sensex opened strong on October 10, lifted by notable gains in realty and metal stocks. The focus now shifts to the Q2 earnings season, starting today with Tata Consultancy Services, India's largest IT firm, set to report its results.

At about 9:20 am, the Sensex was up 244.93 points or 0.30 percent at 81,712.03, and the Nifty was up 80.00 points or 0.32 percent at 25,062.00. About 1,763 shares advanced, 491 shares declined, and 125 shares unchanged.

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"Even as we look to start the day in green, the overall market seems to be in a consolidation phase as investors are in a wait-and-watch mode given the escalations in the Middle East", Kranthi Bathini, Director of Equity Strategy said in a conversation with Moneycontrol. Bathini, however, added that the overall positive sentiment is intact as most foreign direct investment is coming to India.

Among stocks, the flagship firm of the Adani Group, Adani Enterprises will be in focus after the company launches the first tranche of its qualified institutional placement (QIP) offering to raise as much as $500 million, to launch a second QIP in the coming months to raise more funds. Adani Enterprises board in May had approved a total fundraising of Rs 16,600 crore or approximately $2 billion.

Also read: Capex for airports, expressway, green energy projects: How Adani Enterprises plans to use its QIP proceeds

TCS is also making headlines as it will declare its Q2 earnings later today. For TCS, the focus will remain on demand recovery and the generative AI (Gen AI) pipeline, as rival Accenture has recently posted a stellar uptick in interest and revenue from Gen AI projects. According to Moneycontrol’s poll of 10 brokerages, TCS’ revenue is expected to grow 2.1 percent sequentially and 7.1 percent year on year (YoY) to Rs 63,938 crore.

Read more: Ratan Tata commanded infinite P/e; the value he brought to business was immeasurable, says Madhusudan Kela

The broader market, entailing the mid and small caps, also edged higher after rising 0.4 and 0.6 percent, respectively. There have been concerns over rich valuations, but the two have outperformed the Nifty by a comfortable margin since the start of the year. India VIX, the barometer to assess market anxiety, also cooled off by 1.3 percent to be at the 14 levels.

"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, says Hardik Matalia, Derivative Analyst at Choice Broking. "The charts of Bank Nifty indicate that it may get 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," he added.

All sectors opened higher led by realty and metal stocks. Nifty IT was trading mildly in the green ahead of TCS Q2 earnings.

L&T, NTPC, Bharat Electronics, Axis Bank, and Bajaj Auto were the top gainers on the Nifty. Adani Enterprises, Tata Motors, Appollo Hospital, Infosys, and HUL were the losers.

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