Mid-day Mood | Sensex, Nifty erase early losses led by IT, media stocks

Domestic benchmark indices Sensex and Nifty wiped off initial losses and turned mildly in green on April 3 afternoon trade, supported by gains in technology and media stocks. However, broader markets outperformed frontline indices amid easing volatility.

Around noon, the Sensex was up 41.16 points or 0.06 percent at 73,945.07, and the Nifty was up 1.20 points or 0.01 percent at 22,454.50. The market breadth was in favour of gainers as about 2,450 shares advanced, 866 shares declined, and 77 shares were unchanged.

Anand James, Chief Market Strategist, Geojit Financial Services said that the upside momentum looked restricted and Nifty needs to breach 22,460 to steer towards positive side. "Nifty needs to float above 22,460 to further run up to 22,700 trajectory. Else, we can expect downsides to extend to 22,190," he said.

Sectoral trend

Majority of sectoral indices were trading higher on April 3 noon trade. Nifty IT index was the top sectoral winner after CLSA hiked target prices of Wipro, HCL Technologies, and TCS. They believe that the IT firms will guide conservatively going ahead and kept outlook unchanged for key verticals like banking, retail, hi-tech, and telecom. On the flipside, Nifty Realty index was the top loser as investors booked profit after a day's record high feat.

Fundamental view

Since Nifty is up 3 percent from the March lows, the market is resilient and the undertone is strong, said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. He believes that it is possible that the dips will get bought as this has been a successful strategy in India and domestic money has been calling the shots here. "Valuation comfort is in largecaps," he added.

NALCO: Shares of this metal and mining company bucked market trend on April 3, rising over 5 percent to a record high of Rs 176.25 after the state-owned firm said it clocked the highest-ever cast metal production of 4.63 lakh metric tonnes in FY24.

Adani Power: The stock hit a fresh record high on April 3 with stock surging for fourth straight sessions amid higher volumes. Adani Power hit an all time high of Rs 611.75 on BSE, up 5 percent from previous close. In the last four trading sessions, it gained 18.4 percent. So far this year it jumped 15.3 percent.

JSW Energy: The stock rose over 2 percent to hit a 52-week high of Rs 558 on April 3 after the company announced plans to raise Rs 5,000 crore through qualified institutional placement (QIP), in one or more tranches.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.