The Indian stock markets began trading on Wednesday on a muted note. Around 9:35 AM, the BSE Sensex slipped close to 150 points and traded at 75,820.80, while the NSE Nifty50 stood under 22,900, after falling more than 50 points.
However, the sentiment in the market took a u-turn and as the session progressed, indices started rallying ahead. As of 10:35 AM, the Sensex climbed almost 300 points and traded at 76,262.59, while the Nifty jumped over 50 points and crossed the 23K mark at 23,021. This recovery was driven by blue-chip bank stocks and fresh foreign fund inflows.
On the 30-share Sensex platform, Zomato, Tata Steel, L&T, Kotak Mahindra Bank, and Axis Bank emerged among the gainers. Meanwhile, the laggards in the session so far included TCS, Bharti Airtel, Tech M, Sun Pharma, and Hindustan Unilever.
In the broader markets, the indices traded entirely in green. The Nifty Microcap 250 index climbed 2.40 per cent in the session, followed by the Nifty Smallcap 100 index which jumped 2.32 per cent.
Sectorally, the Nifty Realty index dominated in green and traded 2.65 per cent higher, followed by the Media index which gained 2.09 per cent.
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What To Expect From Markets?
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, explained that the market remained weak, despite largecap valuations turning fair and segments like financials becoming more lucrative. “Seen in the context of new records being set by S&P 500 and Nasdaq, India’s underperformance is striking. News of Chinese authorities encouraging their top businessmen to invest is another headwind for India since Chinese stocks are cheap and may attract big inflows from FIIs, which means FIIs might continue selling in India,”the expert said.
Vijayakumar said that the FIIs will start buying once the dollar depreciates and the US bond yields start coming down. “This might take time. A strong fundamental factor that can turn FIIs into buyers is an indication of earnings recovery in India,” he added.
Macro Indicators
The Foreign Institutional Investors (FIIs) reversed the sentiment and became buyers on Tuesday after unabated selling. They bought Indian equities worth Rs 4,786.56 crore, according to exchange data. The global oil benchmark Brent crude climbed 0.05 per cent to touch $75.88 a barrel.
