Sensex Gains 211 Points, IT Buying Supports Markets Despite Global Sell-Off

Mumbai: On October 15, Indian stock markets experienced an early gain with technology shares bolstering benchmark indices, despite a downturn in overseas markets. By 9:26 am, the Sensex was recorded at 72,993.28, an increase of 211.39 points or 0.29 percent. Meanwhile, the Nifty stood at 22,700.80, up 78.10 points or 0.35 percent.

Both indices had surpassed their opening levels. However, the Sensex fell 376 points later in the day due to inflation and financial stocks. In contrast, technology shares remained the key support, with Nifty IT gaining 1.5 percent in early trading, bringing its three-day advance to about 7.8 percent following HCLTech's positive earnings.

Nevertheless, nine out of sixteen major sectors experienced a decline. Smallcap and midcap indices saw a 0.7 percent and 0.2 percent drop, respectively, suggesting that buying was not widespread but rather concentrated. Inflation remains a concern for global market sentiment as US inflation rose to 3.7 percent in September from 3.4 percent in August, potentially leading to another Federal Reserve rate hike.

The Nasdaq fell 1.88 percent overnight, while Japanese and South Korean equities faced significant selling. For India, lower oil prices provided some relief, with Brent trading around $105 a barrel and US bond yields easing towards 5.13 percent. These factors added to the overall market sentiment. The early trend indicates selective buying in heavyweight stocks rather than a full recovery across the market.

While domestic institutional purchases of around ₹2,670 crore on Wednesday were higher than foreign selling of approximately ₹1,857 crore, the immediate challenge is for Nifty to maintain its level above 22,700 with more widespread participation. Failure to do so could lead to renewed selling, despite the strength seen in technology shares.