SENSEX gains 600 pts, NIFTY50 recovers to trade higher after muted open; TCS, Infosys, other IT stocks power gains

After a muted opening, both the NIFTY50 and SENSEX were trading with a divergence during the early trade only to stage a recovery in the later part of the morning market hours on November 6.

NSE data showed that the NIFTY50 index opened flat at 24,538.20 points, compared to 24,536.60 points at the previous equity market close.

While the BSE SENSEX gained 0.13% or 103 points to open at 79,413.66 points on November 6, in comparison to 79310.01 points at the previous stock market close, as per the exchange data.

As of 9:51 am (IST), the NIFTY50 was up 0.48%, trading at 24,655 points, while the SENSEX surged more than 600 points or 0.76% to trade around 79,911 points on Friday’s market.

Before the market opened, the GIFT NIFTY futures were indicating a negative performance for the trading session on Friday, as investors focused on the global sell-off sentiment despite strong FII interest in Indian equities.

Investors are keeping a close watch on the rising crude oil prices, geopolitical sentiment and any further escalation in West Asia, which can potentially impact market sentiment amid the consistent global market selling pressure.

Data showed that the benchmark Brent crude oil prices witnessed a sharp rebound, surging back to $100 per barrel (bbl) on Friday’s market, with investors focusing on Trump’s latest threat to “destroy” Iran amid the tanker attacks at the Strait of Hormuz.

Brent crude oil prices (January futures) were trading 2% higher at $100.25 per bbl as of the morning hours on Friday, India time, in comparison to $99.21 per bbl at the previous market close, as per Investing.com data.

Latest media reports showed that three vessels caught on fire at the Strait of Hormuz after allegedly trying to pass the key maritime pathway using an “unauthorised route.” This comes at a time when President Donald Trump threatened that the United States may have to “destroy” the rest of Iran and rebuild it in the next 25 years.

Bloodbath in global markets

The Indian equity markets witnessed high volatility during the morning hours on November 6, after a stock market crash in the Asian markets and Wall Street due to fears over a potential US Congress crackdown on AI and tech spending, as Democrats take control of the House and the Senate.

As foreign investors steer clear of tech and AI stocks in developed markets, the low-risk bets in Indian equities look relatively more attractive amid the elevated volatility and safe-haven demand in the market.

NSE data showed that foreign institutional investors (FIIs) purchased ₹14,974.68 crore worth of capital market assets across the stock exchanges in a single day on Thursday’s market, indicating continued inflows and elevated interest in Indian equities.

Asian markets crashed on Friday’s trading session due to the spillover effect and selling pressure in AI and tech stocks emerging from the stock market crash on Wall Street on Thursday.

As of the morning hours, Nikkei 225 crashed 7%, Hang Seng was down 1.25%, Shanghai Composite was down 1.53%, KOSPI tumbled 8.7%, and Singapore’s FTSE was down 2% on Friday’s market.

Only support for the domestic markets is now pinned on whether or not FIIs keep up their buying spree due to the lower risk profile of Indian equities despite the weak global market cues.

Top gainers & losers today

Mahindra & Mahindra, Titan, TCS, Infosys, HCL Tech, HDFC Bank, among others, were leading the pack of gainers on the NIFTY50 index during the morning hours on Friday, November 6.

Mahindra & Mahindra was up 4.3%, Titan was up 2.7%, TCS was up 1.6%, Infosys was up 1.4%, HCL Tech was up 1.6%, and HDFC Bank was up 1.7%.

Others like Shriram Finance, Hindalco, Adani Enterprises, Power Grip Corp., and Tata Motors PV were among the top losers on November 6.

Shriram Finance lost 2.7%, Hindalco lost 2.6%, Adani Enterprises lost 1.3%, Power Grip Corp. lost 1.3%, and Tata Motors PV declined 1.2%.

Out of the 50 stocks listed under the NIFTY50 index, 21 stocks were trading in the green zone, while 29 stock were trading in the red territory.