Nifty Holds Above 7,600; Auto Stocks Gain

The BSE Sensex and Nifty moved higher today, tracking gains in other global markets on an easing of tensions in Ukraine. However, conflicts in other geopolitical hotspots such as Iraq limited gains in global markets. The Sensex had lost 2.2 per cent in the previous three sessions amid rising geopolitical tensions.

Despite today's bounce-back, market analysts remain cautious. Market analyst Sarvendra Srivastava said Nifty faces resistance at 7630-7650 levels.

Imtiyaz Qureshi, co-founder & director of Investeria Financial Services, said today's gains could be a one-day affair unless Nifty manages to close above 7,620 in the session. If Nifty manages to close above 7,620 levels in today's session, it could rally up to 7,700 levels, he added.

The gains were broad-based with most of the BSE sectoral indices, barring power and FMCG, in the green. Strong buying was seen in real estate stocks, after market regulator Sebi approved the guidelines for Real Estate Investment Trusts (REITs). Major commercial real estate players DLF, Phoenix Mills and Oberoi Realty rose 2-3 per cent.

Auto stocks also saw some traction. Mahindra & Mahindra rose over 5 per cent after after April-June earnings beat estimates.

Tata Motors gained 2 per cent on optimism ahead of its quarterly earnings later in the day.

Among Nifty losers, Power Grid, NTPC, HCL Tech and Dr Reddy's Lab fell between 1-2 per cent.

At 12:37 p.m., the Nifty was up 53 points to 7,622 while Sensex rose 190 points to 25,519. At its day's high, Sensex rose to 25,550. (With Agency Inputs)