Markets in a narrow range, but IT stocks shine

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Stock market opened on a lacklustre note with a little fluctuation. While the BSE Sensex opened at 46,072, it touched a low of 45,899.10 in the initial hours and currently hovering around 46,067.50 (920 IST).

The 50-stock NSE Nifty is also currently hovering around with a meagre gain of 0.16 per cent at 13,487.45.

However, IT stocks opened on positive note, led by Wipro that gained 3.6 per cent at Rs 377.35 on the NSE, after the company signed a $700-million digital and IT partnership deal with Metro AG,.

“Periods of sustained market buoyancy like this can be used to churn portfolios. Most portfolios will have some poor-quality stocks. Such stocks can be sold, even at a loss, in favour of quality stocks in performing sectors, even if they are slightly expensive. A clear trend in the market is the outperformance of quality IT stocks. The market is discounting the improving prospects of the IT sector.” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Broad indices in green

All the market-cap based indices, including BSE Midcap, BSE SmallCap, BSE-200, BSE-500 and BSE AllCap are ruling in the green. Among the sectoral indices, except BSE Energy, BSE Bankex and BSE Metal, all other indices have edged up.

BSE Realty surged the most by 2.34 per cent followed by BSE IT (1.68 per cent), BSE TECK (1.4 per cent), and BSE Consumer Discretionary (0.97 per cent).

Overnight, the US markets closed on a mixed note with Dow and S&P indices ending in the red, while Nasdaq closing in the green.

 



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