Sensex, Nifty trade marginally higher led by gains in TCS, Wipro; banks dip

Stock market news: Benchmark indices, S&P BSE Sensex and NSE Nifty 50 opened marginally higher on Tuesday, February 6, led by early gains in IT and telecom. TCS, Bharti Airtel, Wipro, and HCL Tech are the early gainers. The dampened sentiment in the financial segment can be attributed to diminished expectations of early rate cuts in the US.

As of 10:10 am, Sensex was trading 325.70 points higher at 72,057.12, and Nifty 50 was trading 85 points higher at 21,856.70. In the previous session, Indian shares faced volatility and closed lower, particularly in the financial sector after a recent rally. Wall Street equities also closed lower overnight, influenced by Federal Reserve Chair Jerome Powell's remarks over the weekend, where he pushed back against the possibility of near-term rate cuts. Additionally, robust growth in the US services sector further weighed on market sentiment.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said even as “Markets may see a steady positive start weakness in overnight US trades and sluggishness in other Asian indices could weigh on sentiment in later trades. The bear trade could gain momentum from here on, as Nifty has formed a ‘Double Top’ pattern on the daily charts.”

“Nifty’s all-time high at 22127 mark will act as a strong hurdle. Technically, the biggest intraday support for the index is now seen at the 21,477 mark with the next support placed at the 21,137 mark,” Tapse added.

According to exchange data, on Monday, foreign portfolio investors (FPIs) made net purchases of shares worth Rs 519 crore, while domestic institutional investors sold stocks worth Rs 1,189 crore on a net basis.

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