Stock market update: IT stocks lift Sensex in morning trade despite FII selloff

Eternal, Infosys, HCL Tech, Power Grid, ITC, IndusInd Bank, Tech Mahindra, and Nestle led the morning Sensex rally on Friday after IT stocks saw major buy-ins. Asian markets lifting added to the positive sentiment, with the 30-pack BSE benchmark gaining more than 411 points.

In morning trade, the NSE Nifty gained by at least 145 points.

Kospo, Nikkei, SSE Composite, and Hang Seng indices traded in the green on Friday despite the US markets closing almost flat on Thursday.

Geojit Investments’s V.K. Vijayakumar, however, thinks a selloff from foreign institutional investors (FIIs) is on the horizon. “The big FII selling on 20th and 22nd of this month indicates that the FIIs may again turn sellers if the global environment turns unfavourable,” he told agencies.

“After the 14 per cent pull back from the March lows, the market is struggling to find direction. It appears that the sustained FII buying which played the important role in this rally has run out of steam,” reasoned Vijayakumar.

However, he noted that strong macros in the Indian markets, such as declining inflation and interest rates, kept it resilient, especially segments such as financials, telecom, and aviation.

FIIs sold off at least ₹5,045 crore worth of equities on Thursday, as the Sensex lost 644.64 points and Nifty shed 203.75 points by the closing bell.

The shrinking bond yield differential added to the rupee’s decline, with the Indian currency depreciating by 15 paise to 86.10 vs the dollar in Friday early trade.

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