Markets Open Higher on US-India Trade Deal Optimism; IT Stocks Lead Early Rally

Benchmark indices opened on a positive note Wednesday, lifted by optimism surrounding a potential trade deal between India and the United States. Gains in IT and pharma stocks drove early momentum on the bourses.

The BSE Sensex rose 103.13 points to 83,800.42, while the NSE Nifty50 added 21 points to 25,562.80 as of 9:28 AM.

IT stocks were the top performers in early trade. Infosys led the pack with a 1.79% rise, followed by TCS (0.93%), Sun Pharma (0.74%), Tata Steel (0.72%), and NTPC (0.71%). On the downside, Bajaj Finserv fell 1.09%, while Asian Paints, Bharat Electronics, Bajaj Finance, and Eicher Motors also posted losses.

Sectorally, Nifty IT jumped 1.03%, followed by gains in Nifty Metal (0.52%), PSU Bank (0.26%), Oil & Gas (0.23%), Financial Services (0.18%), Private Bank (0.18%), and Auto (0.16%). Nifty FMCG, Realty, and Healthcare were the only laggards at the open.

Market expert Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that while the trade deal buzz may help breach resistance levels, sustained gains will be difficult amid weak earnings visibility and sluggish June GST collections and auto sales data.

“There is no strong catalyst yet to justify a continued rally, especially with high valuations,” he said.

He added that the resilience of the US economy and corporate earnings has supported global markets, but with the Fed ruling out imminent rate cuts, bullish sentiment may be tempered in the near term.

Meanwhile, India VIX dipped 0.29%, reflecting lower market volatility. Broader indices were also in the green, with the Nifty Midcap 100 up 0.03% and Nifty Smallcap gaining 0.07%.