Sensex rises over 100 points, Nifty gains as IT stocks outperform

Representational image. File pic

Indian equity benchmarks traded in a narrow range on Wednesday morning for a second consecutive session amid a decline in crude oil prices.

According to IANS, Sensex was trading at 76,348.95, up over 100 points or 0.19 per cent in early deals, while Nifty was at 23,853.75, higher by 30 points or 0.12 per cent.

Sectoral indices

Sector-wise, Nifty IT led the gains, rising nearly 1 per cent, followed by Nifty MidSmall IT & Telecom (0.72 per cent), Nifty Pharma (0.68 per cent), Nifty Healthcare (0.57 per cent) and Nifty Realty (0.3 per cent).

Financial and banking stocks also remained in positive territory, with Nifty Private Bank and Nifty PSU Bank advancing 0.23 per cent and 0.21 per cent, respectively.

On the downside, metal and auto stocks witnessed selling pressure, with Nifty Metal declining 0.23 per cent and Nifty Auto slipping 0.21 per cent.

Brent crude oil fell by 1 per cent

On the commodities front, international benchmark Brent crude fell more than 1 per cent to around USD 76 a barrel, while US West Texas Intermediate (WTI) crude declined 1.5 per cent to about USD 72 a barrel.

Nifty and Sensex on Tuesday closed in red

At close on Tuesday, June 23, the Nifty 50 declined 1.16 per cent to settle at 23,824, while the Sensex fell 1.16 per cent to close at 76,200.

Moreover, on the sectoral front, Nifty Metal, IT, PSU Banks, and Media emerged as the key laggards, witnessing significant selling pressure and dragging the benchmark indices lower.

Expert opinion

An analyst, while expressing his views and adding that this marks a positive move for the market, said, "The crash in Brent crude has removed the macro headwinds for India. The rupee has stabilised, and FII selling appears to have tapered off," according to IANS.

However, they further cautioned that a weak monsoon remains a concern. Rainfall has been deficient by 43 per cent so far, raising fears of a marginal impact on economic growth and corporate earnings.

The analysts advised investors to align their portfolios with the emerging risks, noting that sectors such as FMCG and entry-level two-wheelers could be affected by lower rural incomes. "Pharmaceutical stocks, with their relatively inelastic demand profile, are likely to remain resilient and could even outperform in a monsoon-deficient environment," they said.

(With inputs from IANS)