MUMBAI: The Indian stock markets continued its upward movement on Wednesday as both indices opened with marginal gains. The Nifty index surged by 74.40 points, or 0.32 per cent, to open at 23,250.45 points, while the BSE Sensex index opened at 76,900.14 points, gaining 400.51 points or 0.52 pe rcent.
Experts noted that selling by foreign investors is expected to continue, and any clarity will come only after the Trump inauguration on January 20.
“There are reports that Trump will begin with low tariff hikes putting pressure on major exporters to the US, even while leaving room for negotiations. If this scenario plays out, a further rise in the dollar and US bond yields will be arrested. Till then, the FII selling will continue, preempting any rally in the market. The market will witness lots of stock-specific action in response to the Q3 results”, said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
In the sectoral indices, Nifty FMCG, Nifty Pharma, and Nifty PSU Bank opened with a marginal decline, while other indices, including Nifty IT, Media, Metal, Realty, Bank, and Auto, gained in the opening session. In the Nifty 50 list, 29 stocks opened with gains, while 20 stocks declined in the opening session. The top openers included Tech Mahindra and Tata Steel.
For Q3 earnings, HDFC Life Insurance Company, Oracle Financial Services Software, L&T Technology Services, Bank of Maharashtra, Punjab & Sind Bank, among others, are set to announce their financial performance today.
“The Nifty’s bounce yesterday has created a ‘bullish harami’ formation given the Monday drop which is similar to what was seen on January 7 and means that bulls have to push the index through 23340 for a larger advance. The 17th to 23rd January time window is nearing, so support in the 22,830-23,000 area and resistance in the 23,355-23,470 zone will be watched closely. Any extension of yesterday’s rebound needs to hold the Monday low of 23047”, said Akshay Chinchalkar, Head of Research, Axis Securities.
In other Asian markets on Wednesday, Japan’s Nikkei 225 index surged by 0.40 percent, Hong Kong’s Hang Seng index rose by 0.22 percent, and South Korea’s KOSPI gained by 0.22 percent. However, Taiwan Weighted and Singapore’s Straits Times declined at the time of filing this report. (ANI)