Indian benchmark equity indices recovered early losses and traded higher on Thursday, led by IT stocks, despite concerns about moderate corporate earnings.
The BSE Sensex was up 219.41 points, or 0.29%, at 76,624.40, while the Nifty50 rose 68.05 points, or 0.29%, to 23,223.40 around 10:18 a.m.
Following poor Q3 earnings, HUL shares dropped more than 3% in early trading. According to Goldman Sachs, the company's EBITDA and volume growth results for the third quarter were below expectations. Among Sensex stocks, the stock was also the largest laggard.
In the meantime, Asian Paints, Adani Ports, L&T, NTPC, Nestle India, and SBI all had a poor start. The day started off better for UltraTech Cement, Tech Mahindra, Zomato, Infosys, M&M, and TCS.
Following Coforge and Persistent Systems' better-than-expected Q3 earnings, the Nifty IT index increased by 1.35%. Following the announcement of a 30.4% YoY increase in net profit to Rs 373 crore, Persistent Systems' shares increased by more than 7%. Following a 5.4% YoY increase in PAT to Rs 255.9 crore, Coforge's shares increased by almost 9%.
Following the company's announcement of a 177% YoY increase in net profit to Rs 119 crore for the third quarter, Go Digit shares increased by more than 6%.
Experts Take
"There are two market trends that deserve your attention. One, institutional activity is consistent, with FIIs continuing to sell and DIIs continuing to buy. Two, there is a trend toward quality: largecaps are strong while the broader market is weakening. "These two trends are likely to continue in the near term," said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"Since the dollar index and US bond yields remain high, FIIs are unlikely to become buyers anytime soon.
"Since the dollar index and US bond yields remain high, FIIs are unlikely to become buyers anytime soon. This will cap a rally in the market, despite the fact that it is oversold," Vijayakumar said.
Hardik Matalia, Derivative Analyst at Choice Broking, stated, "After a negative opening, the Nifty can find support at 23,050, followed by 22,950 and 22,800. On the higher side, 23,250 may be an immediate resistance, followed by 23,350 and 23,500."
