Sensex, Nifty open higher, trade flat; auto, financials gain, IT stocks drag

Stock market news: Indian indices opened Monday, February 19, 2024, on a higher note despite weak global cues. S&P BSE Sensex opened today at 72,627.60 and NSE Nifty 50 opened at 22,103.45. However, the indices have slipped to red during early trade, with information technology being the top loser. While TCS, Wipro, LTIMindtree, and Tech Mahindra are among the major losers, Bajaj Auto, Adani Enterprises, Bajaj Finance, and ITC are among the major gainers on Nifty 50 index.

As of 10 am, Sensex was trading 79.10 points lower at 72,347.54 and Nifty 50 was trading 7.9 points lower at 22,032.80.

Coming to sectoral indices, Nifty IT, Nifty Realty, and Nifty PSU Bank have slipped to red during early trade, while Nifty Consumer Durables, Nifty Media, Nifty FMCG and others are among the top gainers. Nifty IT dropped close to 1 per cent after data showed US producer prices increased more than expected in January, adding heft to the view that any potential Fed rate cuts are not imminent. IT companies earn a significant share of their revenue from the US

Tata Power Company gained 2 per cent on getting a letter of intent to acquire an Rs 838 crore power project.

Pharma stocks advanced 0.5 per cent. Natco Pharma added 5.5 per cent and was the top percentage gainer in the pharma index.

"Domestic equities have remained resilient in the face of fading hopes of an early US rate cut, thanks to strong macroeconomic fundamentals and persistent domestic inflows," said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.

Khemka added that in-line quarterly earnings, sustained earnings stability in energy companies and interest in public sector banks due to valuation comfort have aided sentiment and could even power markets to new highs this week.

Paytmrose 5 per cent after the Reserve Bank of India granted its payments bank more time to wind down operations and the company partnered with Axis Bank to keep some of its popular products running.

Life Insurance Corporation of India gained 3 per cent after receiving refund orders for Rs 21,741 crore from the income tax department.