IT and metals lead the rise as Nifty and Sensex open higher

Nifty and Sensex Start Strong, Boosted by IT and Metal Stocks

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: July 26, 2024

Summary: The S&P BSE Sensex had gained 0.4% to 80,358.63 by 9:41 am, while the NSE Nifty 50 had increased 0.47% to 24,522.3.

Benchmark indices moved upward on Friday as buyers bought equities after recent declines, despite weakness in heavyweight financials weighing on gains.

The S&P BSE Sensex had gained 0.4% to 80,358.63 by 9:41 am, while the NSE Nifty 50 had increased 0.47 percent to 24,522.3.

Due to pressure from lower-than-expected earnings from big businesses including Reliance Industries, Wipro, Bajaj Finance, Axis Bank, and Nestle, the benchmarks have lost ground during the previous five sessions.

Analysts highlighted that the union budget on Tuesday, which includes tax increases on capital gains from stock investments and derivatives trading, weighed on market confidence.

"The buy-on-dips strategy, which has worked well in this rally, remains viable," said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

Ten of the thirteen major areas saw progress. With a 1.4% increase, the metals sector led the gains and was the best sector performer in terms of percentage. Out of the fifteen components in the metal index, thirteen increased.

This increase in the metal index came after a 1.3% decrease in the previous session, which was caused by declining global metal prices as a result of worries about demand in China, the world's largest consumer.

Vedanta saw a 2.3% rise after an upgrade from S&P, owing to enhanced liquidity and capital structure. Cyient, on the other hand, had an 8% dip after disclosing a drop in profit for the June quarter and attributing it to project execution delays.

Tech Mahindra experienced a 2% decline as analysts raised concerns about the company's high valuations.

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