Nifty, Sensex rise in early trade led by financials, profit booking caps gains

Stock market news: Benchmark indices opened slightly lower on Thursday as investors booked profit after recent record highs in multi-sectors. However, the indices erased losses in early trade led by financials and information technology stocks.

As of 10;20 am, the benchmark Nifty 50 index was trading 0.21 per cent higher at 25,104.00 and the 30-share BSE Sensex was trading 0.28 per cent higher at 82,015.57.

The Nifty 50 index had scaled an all-time high on Wednesday, but did not see further upsides as profit-booking in multiple sectors.

Meanwhile, broader markets in Asia opened lower, dragged down by technology shares. The MSCI Asia ex-Japan index slipped 0.5 per cent, in line with losses on US markets, where Wall Street equities ended lower, chipmaker Nvidia surging yet failing to live up to some investors' expectations.

Investors have been waiting for the preliminary estimate of US gross domestic product for the second quarter and the US Federal Reserve's core personal consumption expenditures index, due both on Friday. The release of these economic indicators will be closely watched for any hints that may reveal whether the Fed intends to ease rates.

Of the 13 major sectors, eight were in decline. Meanwhile, the more domestically-oriented small-cap and mid-cap indices showed little change.

Of individual shares, Paytm jumped 2.5 per cent as the government cleared an investment in its payments unit. Reliance Industries, heavyweight in the Nifty 50, was flat ahead of its highly anticipated AGM later in the day. The conglomerate, along with Walt Disney, received clearance for an $8.5 billion merger of the two companies' Indian media assets.

In other stock action, KEC International and Sonata Software rose about 5 per cent each on the back of recent order wins.