Mumbai (Maharashtra) [India], October 23 (ANI): Indian equity benchmarks opened higher on Friday, with the Sensex rising 372.76 points, or 0.51 per cent, to 73,622.15 and the Nifty 50 gaining 43.75 points, or 0.19 per cent, to 22,731.40, as IT stocks led early gains at the time of filing this report. 

The BSE Sensex opened at 73,665.64, against its previous close of 73,249.39, while the NSE Nifty 50 began the session at 22,742.20, compared with its previous close of 22,687.65.

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the sharp rise in Brent crude prices to USD 114 per barrel remained a major negative for the economy and equity markets. However, he noted that favourable movements in US bond yields and the rupee, along with the expected return of funds locked in the Jio Platforms IPO, could provide support to the domestic market.

"The sharp decline in the US 10-year yield to 4.96 per cent and the appreciation in the rupee to 94.70 against the dollar are positives that can restrain FII selling significantly," Vijayakumar said.

He added that liquidity returning to the financial system following the completion of the Jio Platforms IPO allotment could act as a key catalyst for the market in the coming week. Of the Rs 3.73 lakh crore that has gone into the IPO over the last two days, more than Rs 3 lakh crore is expected to return to the system after the allotment process is completed by next Monday, he said.

According to Vijayakumar, the anticipated liquidity inflow could lift market sentiment, with equities potentially moving higher in advance of the expected funds becoming available.

He cautioned, however, that any recovery would likely be led by large-cap stocks, which have shown resilience amid market volatility. The broader market, particularly small-cap stocks, could remain under pressure as valuations inflated by liquidity rather than underlying fundamentals continue to face scrutiny.

"Fairly-valued large-caps, particularly those which are growing well, present value buying opportunities for patient investors," he said.

Shares of eMudhra Ltd fell to Rs 343.05, from Rs 540.15 at the close on October 19, marking a decline of Rs 197.10, or around 36.5 per cent. The fall comes amid a security incident involving eight intermediate certificate authority keys in its global digital certificate business, raising concerns over potential fraudulent certificate issuance.

Meanwhile, the domestic market opened higher despite a sharp overnight decline in US technology stocks. The Nasdaq fell 2.6 per cent and the S&P 500 declined 1.2 per cent, while the Dow Jones Industrial Average edged higher. In Asian markets, South Korea's KOSPI dropped 3 per cent and Japan's Nikkei 225 fell 1.9 per cent.

Among Nifty 50 constituents, Tata Consultancy Services (TCS) led the gains, rising 3.73 per cent, followed by Infosys, up 3.10 per cent, and HCL Technologies, which gained 2.44 per cent. Tech Mahindra advanced 1.20 per cent, while Bharti Airtel rose 0.83 per cent and Reliance Industries gained 0.48 per cent.

On the other hand, Hindalco Industries fell 1.47 per cent, Adani Enterprises declined 1.35 per cent and Adani Ports dropped 0.80 per cent. Tata Steel lost 0.74 per cent, while Trent and Titan also traded lower.

Sectorally, the Nifty IT index rose 2.72 per cent, while the Nifty Metal index declined 1.24 per cent. Realty fell 0.91 per cent and media dropped 0.67 per cent, with auto and PSU bank stocks also trading lower.

Brent crude was trading at USD 113.70 per barrel, up 0.47 per cent, while crude oil gained 0.59 per cent to USD 100.05 per barrel.

Market experts also highlighted key technical levels for the session. Hemang Gor, Senior Research Analyst for Derivatives and Technical Research at Axis Direct, said a sustained move above the Nifty's 22,800 resistance level could trigger a short-covering rally towards 23,000, while 22,500 remained a critical support level.

Shrikant Chouhan of Kotak Neo said 22,600/73,200 and 22,550/73,000 would be important support levels for the Nifty and Sensex, respectively. A sustained recovery could take the Nifty towards 22,800 and subsequently 23,000, while a fall below 22,550 could intensify selling pressure and drag the index towards 22,450-22,350. (ANI)