Indian equity benchmarks opened higher on June 29 despite rising tensions between the United States and Iran in West Asia. In early trade, the NSE Nifty 50 opened at 24,061, while the BSE Sensex traded at 77,132, up 26 points.
Indian markets began the first trading session of the week on a positive note. Despite global geopolitical tensions and cautious investor sentiment, domestic equities witnessed gains in early trade. Both the Sensex and Nifty opened in positive territory, supported by buying interest in pharmaceutical and metal stocks, while information technology and select banking stocks remained under selling pressure.
According to market experts, investor confidence in Indian equities remained intact despite escalating tensions between the United States and Iran in West Asia. However, global developments and corporate announcements could determine market direction during the trading session.
At the opening, the BSE Sensex traded at 77,132, up about 26 points, while the NSE Nifty 50 opened at 24,061. Early gains were driven primarily by buying in pharmaceutical, metal and select energy stocks. Shares of information technology companies continued to remain under pressure.
Pharmaceutical stocks extended gains for a second consecutive session at the start of trading. Several drug makers attracted investor interest following positive corporate updates and regulatory approvals. Meanwhile, the Nifty Metal Index advanced about 0.65 percent, with buying interest in metal companies supporting overall market sentiment. In contrast, the information technology sector remained under pressure.
In early trade, 32 of the Nifty 50 constituents traded higher, while 18 stocks declined.
The top gainers included Dr. Reddy's Laboratories, Shriram Finance, Trent Limited, ONGC and Sun Pharma.
The top losers were Kotak Mahindra Bank, Adani Enterprises, InterGlobe Aviation (IndiGo), Adani Ports and Mahindra & Mahindra.
Several companies remained in focus following corporate announcements and recent business developments. These included Kotak Mahindra Bank, Torrent Power, Persistent Systems, Aurobindo Pharma, Indoco Remedies, BEML, Lupin, Dr. Reddy's Laboratories, Jubilant Pharmova, Zydus Lifesciences, Hexaware Technologies, KEC International, Bharti Airtel and Vodafone Idea.
These developments resulted in higher-than-usual movement in their respective shares during early trade.
Shares of Kotak Mahindra Bank fell more than 2 percent after the bank announced that Managing Director and Chief Executive Officer Ashok Vaswani does not wish to seek reappointment after the completion of his current term. The prospect of a leadership transition prompted investor caution, resulting in selling pressure on the banking stock. Market experts said future announcements regarding the appointment of new leadership could influence investor sentiment.
Shares of Power Finance Corporation (PFC) and REC Limited also declined during early trade. Investors adopted a cautious approach following reports related to corporate restructuring and a proposed merger. In early trading, PFC shares fell about 1.8 percent, while REC also registered a modest decline.
