Tech stocks surge, market shows resilience amid global uncertainty
In a morning trading session marked by cautious optimism, the stock markets demonstrated resilience on Thursday, with benchmark indices marginally advancing despite ongoing global economic challenges and persistent foreign institutional investor (FII) selling.
The Sensex opened at 76,414.52 and quickly climbed to 76,524.96, registering a modest gain of 119.97 points or 0.16 per cent. Similarly, the Nifty rose 40.60 points (0.18 per cent) to 23,195.95, reflecting a measured recovery from recent market volatility.
Technology stocks emerged as the primary drivers of market momentum, with Wipro leading the pack by surging 4.38 per cent. Other notable tech performers included Tech Mahindra, which gained 1.78 per cent, capitalising on renewed investor confidence following US President Donald Trump’s announcement of a $500 billion private-sector AI infrastructure initiative.
“The market found support near the 23,000 level, which is a crucial psychological threshold,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities. “If the index sustains above this level, we might see a continued pullback formation.”
The morning’s trading landscape revealed a mixed sectoral performance. While the IT index showed robust gains of over 2 per cent, the realty sector experienced significant pressure, dropping 4.05 per cent. This divergence underscores the current market’s selective investment approach.
Foreign institutional investors continued their net selling trend, offloading equities worth ₹4,026 crore on January 22. In contrast, domestic institutional investors demonstrated confidence by purchasing equities worth ₹3,500 crore, providing a counterbalance to the foreign outflows.
Top gainers included UltraTech Cement (+1.94 per cent), Trent (+1.84 per cent), and Mahindra & Mahindra (+1.36 per cent). Conversely, Hindustan Unilever led the losers, declining 1.74 per cent, followed by Axis Bank (-0.96 per cent) and Nestlé India (-0.88 per cent).
Market experts remain cautious about the near-term outlook. “We could expect Nifty to gather support between 23,050 and 22,950 and face resistance between 23,370 and 23,410 in the next session,” noted VLA Ambala, Co-Founder of Stock Market Today.
The global context adds complexity to the market sentiment. US markets reached record highs, with the Nasdaq Composite climbing 1.3 per cent and closing above the 20,000 mark. AI-related stocks like Arm, Microsoft, and Nvidia saw significant gains, reflecting growing technological optimism.
Upcoming events, including the Union Budget and various earnings announcements, are expected to inject further volatility into the market. Companies like HDFC Bank, HUL, Pidilite, and BPCL are scheduled to report their Q3 earnings, which could potentially influence market dynamics.
Traders are advised to maintain a cautious approach, implementing strict stop-loss strategies and monitoring key support and resistance levels. The market’s ability to sustain levels above 23,000 will be crucial in determining the short-term trend.
As the trading session progresses, investors will closely watch global cues, domestic economic indicators, and corporate earnings to navigate the current market landscape.
