Sensex snaps three-day fall as IT and auto stocks rise

Mumbai, Aug 7 (IANS) Indian stock market opened in green on Wednesday, following buying in auto and IT majors.At 9:37 a.m., Sensex was up 718 points or 0.93 per cent at 79,324 and Nifty was up 249 points or 1.04 per cent at 24,250.

The broader market trend is positive. On the National Stock Exchange (NSE) 1,778 shares are in the red and 122 shares in the green.

All 30 stocks in the Sensex pack opened in the green. Infosys, M&M, Maruti Suzuki, Wipro, Tech Mahindra, JSW Steel, Tata Steel and UltraTech Cement are the top gainers.

All sectoral indices are trading in the green. Auto, IT, fin Service, pharma, metal, realty, media and energy are major gainers.

According to the experts: "After the twin jolts from US recession fears and the unwinding of the Yen carry trade, stock markets globally are slowly limping back to stability. The message from the Bank of Japan that “rates will not be hiked when markets are unstable” will help in stabilising the Yen and prevent further massive unwinding of the Yen carry trade."

The foreign institutional investors (FIIs) extended their selling on August 6 as they sold equities worth Rs 3,531 crore, while domestic institutional investors extended their buying, as they bought equities worth Rs 3,357 crore on the same day.

"After a gap-up opening, Nifty can find support at 24,050 followed by 24,000 and 23,950. On the higher side, 24,300 can be an immediate resistance, followed by 24,350 and 24,400," they added.

Most of the markets in Asia remain bullish. Tokyo, Shanghai, Bangkok, Seoul and Jakarta are all trading on a bullish note. America's markets remained bullish on Tuesday.

Yesterday, Sensex closed at 78,593, down 166 points, while Nifty closed at 23,992, down 63 points. Nifty Bank lost 321 points to close at 49,770. The Nifty 50 saw 21 stocks ending in the green and 29 closing with losses.