After two consecutive sessions of profit booking, domestic equity indices, Sensex and Nifty 50, rebounded on October 1, opening higher as IT, energy, and auto stocks led the recovery.
At 9.20 AM, the Sensex was up 318 points or 0.4 percent at 84,617 and the Nifty was up 86 points or 0.3 percent at 25,896. About 1,803 shares advanced, 690 shares declined, and 138 shares remained unchanged.
Anand James, Chief Market Strategist at Geojit Financial Services, said Nifty could either pause or pull back towards 25,945 but is unlikely to go much higher, as daily chart indicators still suggest further downside to 25,600-24,600. "If we manage a few hours' trade above 25,890, we may be encouraged to incorporate a stronger recovery view in the next few days," he said.
According to PL Capital, the index could see further gains if it holds near the 25,650 support level in the near term.
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In the broader market, the BSE Midcap index edged up by 0.1 percent, while the BSE Smallcap index saw a stronger rise of 0.4 percent.
The Nifty IT index gained nearly 1 percent in early trade, following a 0.4 percent overnight rise in the tech-heavy Nasdaq Composite in the US. With IT earnings set to roll out soon, brokerage firm Nuvama said that it expects Q2FY25 to be a stable quarter for IT, with gradual growth and positive commentary from companies. Excluding LTIMindtree, the remaining nine constituents of the Nifty IT index were up 0.3-4 percent. Tech Mahindra rose over 4 percent and emerged as the top gainer on Nifty 50 after CLSA upgraded it to 'Outperform' from 'Hold' on the back of recent price correction.
Auto stocks were in focus as monthly sales data started trickling in, with M&M, Tata Motors, and Ashok Leyland driving the Nifty Auto index up by 0.3 percent.
Meanwhile, the metal index took a breather after a seven-day rally driven by China’s property sector stimulus and rising iron ore prices. Nifty Metal fell 0.8 percent as Hindalco, JSW Steel, and Tata Steel slipped.
Also Read | M&M shares rise as September sales jump 24% led by SUVs
On the Nifty 50, Infosys, Shriram Finance, Bajaj Finance, Bajaj Finserv, and Tech Mahindra led the gains, rising 1-4 percent, while Eicher Motors, JSW Steel, Titan, Hindalco, and Asian Paints declined 1-2 percent.
On September 30, Fed Chair Jerome Powell signalled that the Fed may stick to smaller quarter-point interest rate cuts going forward, stressing no urgency for further reductions after recent US economic data suggested continued growth and strong consumer spending.
Asia-Pacific markets followed a mixed trend today. Overnight in the US, the S&P 500 reached a record close, bouncing back after Powell said. The Dow Jones Industrial Average also hit an all-time closing high.
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