Sensex, Nifty edge higher driven by IT, financials; broader market under pressure

In the Nifty 50 index, Titan, Shriram Finance, ICICI Bank, Tech Mahindra, and Wipro led the gains, rising 1-2 percent each.

The Sensex and Nifty were in the green on October 22, driven by gains in the IT and financial services sectors. The indices had initially opened on a subdued note, weighed down by a lacklustre earnings season, continued FII selling, and global market weakness amid the ongoing Middle East conflict.

At 9.50 AM, the Sensex was up 258 points or 0.3 percent at 81,409 and the Nifty was up 64 points at 24,845. About 1,019 shares advanced, 1,999 shares declined, and 112 shares remained unchanged.

Foreign Institutional Investors (FIIs) have been consistently pulling out funds from Indian equities and redirecting them to China, where recent stimulus measures and cheaper valuations have made the market more attractive. FIIs have been net sellers throughout October, offloading shares worth Rs 82,479.7 crore as of October 21, while Domestic Institutional Investors (DIIs) have stepped in, buying shares worth Rs 77,402 crore.

"The fact is that even after the correction triggered by the sustained FII selling, Indian market valuations are higher than historical averages," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. "Since market sentiments continue to be negative a sharp and sustained recovery appears difficult even though a rebound can happen at any time."

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The broader market faced selling pressure, with the BSE Midcap and BSE Smallcap indices dropping 0.4 percent and 1 percent, respectively.

Vijayakumar sees resilience in the financial services sector despite the broader market's challenges.

Deepak Jasani, Head of Retail Research at HDFC Securities said that Nifty keeps running into resistance at 25,000. He expects the index to trade within a range of 24,567 to 25,057 in the near term.

In the Nifty 50 index, Titan, Shriram Finance, ICICI Bank, Tech Mahindra, and Wipro led the gains, rising 1-2 percent each. On the other hand, Tata Steel, Tata Consumer Products, M&M, Kotak Mahindra, and Tata Motors were the worst performers, falling nearly 1 percent each.

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Shares of City Union Bank surged 11 percent after receiving a thumbs up from analysts following its strong Q2 FY25 earnings report.

Shares of Ola Electric Mobility climbed over 3 percent after the company announced that it resolved around 99.1 percent of the 10,644 complaints filed with the Central Consumer Protection Authority (CCPA).

Asia-Pacific markets dipped today, following a mixed session on Wall Street, where the Dow Jones Industrial Average and S&P 500 closed lower overnight due to rising Treasury yields and heightened geopolitical tensions in the Middle East.

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