In the Nifty 50 index, Titan, UltraTech Cement, Infosys, ICICI Bank, and Tech Mahindra led the gains, rising 0.7-1 percent each.
The Sensex and Nifty opened flat on October 22 amid a subdued earnings season, persistent FII selling, and global market weakness fueled by the ongoing Middle East conflict. The indices soon gained led by the IT and financial services sectors.
At 9.25 AM, the Sensex was up 122 points or 0.2 percent at 81,273, and the Nifty was up 32 points or 0.1 percent at 24,813. About 941 shares advanced, 1,720 shares declined, and 122 shares remained unchanged.
Foreign Institutional Investors (FIIs) have been consistently pulling out funds from Indian equities and redirecting them to China, where recent stimulus measures and cheaper valuations have made the market more attractive. FIIs have been net sellers throughout October, offloading shares worth Rs 82,479.7 crore as of October 21, while Domestic Institutional Investors (DIIs) have stepped in, buying shares worth Rs 77,402 crore.
"The fact is that even after the correction triggered by the sustained FII selling, Indian market valuations are higher than historical averages," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. "Since market sentiments continue to be negative a sharp and sustained recovery appears difficult even though a rebound can happen at any time."
The broader market faced selling pressure, with the BSE Midcap and BSE Smallcap indices dropping 0.4 percent and 1 percent, respectively.
Vijayakumar sees resilience in the financial services sector despite the broader market's challenges.
Deepak Jasani, Head of Retail Research at HDFC Securities said that Nifty keeps running into resistance at 25,000. He expects the index to trade within a range of 24,567 to 25,057 in the near term.
In the Nifty 50 index, Titan, UltraTech Cement, Infosys, ICICI Bank, and Tech Mahindra led the gains, rising 0.7-1 percent each. On the other hand, Tata Steel, Bharat Electronics, BPCL, Bajaj Auto, and Hero MotoCorp were the worst performers, falling 0.8-1.5 percent.
Asia-Pacific markets dipped today, following a mixed session on Wall Street, where the Dow Jones Industrial Average and S&P 500 closed lower overnight due to rising Treasury yields and heightened geopolitical tensions in the Middle East.
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