Mid-day Mood | Sensex, Nifty inch higher amid positive global cues; IT stocks in focus

Markets across Asia and the US also showcased positive trends.

The equity benchmarks traded higher at noon on January 11 on upbeat global cues but the upmove was limited as caution persisted ahead of the release of the US December inflation data due later in the day.

Information technology stocks were on the radar as India’s biggest IT services firm Tata Consultancy Services (TCS) and rival Infosys kick start the earning seasons with the release of their December quarter numbers later in the afternoon.

Around noon, the Sensex was up 135.82 points, or 0.19 percent, at 71,793.53, and the Nifty was up 43.70 points, or 0.20 percent, at 21,662.40. The market breadth also favoured gainers as two stocks rose for each one that fell.

The broader market fared better, with strong buying in smallcaps and midcaps.

All sectors participated in the upmove and traded in the green. Gains were led by automobiles, PSU banks and energy, which were up 0.5-1.3 percent. Other frontline sectors like banks, metals, pharma and FMCG recorded marginal gains.

The information technology sector recovered from early lows to trade higher.

There is no consistency in FII and DII behaviour, so far, this month. They are going through alternative bouts of buying and selling, restricting the market in a range," said K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

“The market needs triggers to break out or break down from this range,” he said.

A probable negative trigger can be a slightly hawkish statement from the Fed putting off the rate cuts, which the market expects to begin by March. The US CPI inflation data will offer cues to the Fed’s decision.

The Q3 results season, too, would provide indications of the Nifty earnings for FY24. "Financials, capital goods, telecom, automobiles and hotels will post good numbers. IT results will be tepid and FMCG will be a mixed bag," Vijayakumar added.

"From a technical standpoint, the 21,500 zone has proved its mettle as it gave the Nifty a comeback. However, the dent in the consolidation zone should not be ruled out and a cautious view should be maintained," said Sameet Chavan, technical analyst at Angel One.

Chavan said the 21,500 zone would be the key support and a decisive closure above the mark can disrupt the ongoing consolidation.

"Meanwhile, technical indicators are slightly in line with a bearish view; hence, it is advisable to stay light on positions," Chavan added.

Hero MotoCorp, Bajaj Auto, Eicher Motors, Tech Mahindra, IndusInd Bank

Dr Reddy's, Infosys, SBI Life, Nestle, JSW Steel

IndusInd Bank, Axis Bank, Tech Mahindra

Infosys, Nestle, L&T

RIL: The stock extended the previous session's gains to rise more than a percent to hit a new high of Rs 2,691.20. The heavyweight has been in an uptrend after Goldman Sachs reiterated its “buy” call on the back of "exposure to structurally growing consumer and tech businesses, compounding with a robust oil to chemical business". The brokerage raised the 12-month target for Mukesh Ambani-led RIL to Rs 2,885 from Rs 2,660. It revised downwards the EBITDA forecasts for fiscal years FY24, FY25, and FY26 by -2 percent, -3 percent, and -4 percent, respectively.

Polycab India: Shares plunged 22 percent after the income tax department said it unearthed "unaccounted cash sales" of about Rs 1,000 crore when it searched the company's offices the previous day. Multiple block deals worth Rs 1,293 crore also took place on the exchanges. Around 33 lakh shares, representing a 2.2 percent stake, changed hands.

Network 18 Media: Shares surged nearly 7 percent, extending gains for the second day, after being locked in 20 percent upper circuit in the previous session following a block deal. Around 1.3 crore shares, representing a 1.3 percent equity, changed hands on January 10 in a Rs 155.50-crore deal. Moneycontrol could not immediately identify the buyers and sellers involved in the transaction.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.