Indian equity benchmarks opened on a cautious but positive note on Wednesday, with buying in IT and select financial stocks helping offset weakness in auto, realty and metal counters.
The BSE Sensex traded
at 76,895.19, up 86.71 points (0.11%) at around 9:16 am. The Nifty 50 was hovering near the 24,000 mark, after ending the previous session at 23,989.15.
Among Sensex constituents, Tech Mahindra, Trent, Infosys, IndusInd Bank, Sun Pharma and TCS emerged as the top gainers in early trade, rising by up to 1.02%, while Kotak Mahindra Bank, Maruti Suzuki, Bharti Airtel, Reliance Industries, Bajaj Finance and Axis Bank traded lower, falling by up to 0.52 per cent.
Broader markets also remained firm. The Nifty Midcap Select advanced 0.43%, while the Nifty Smallcap 100 gained 0.49%, indicating continued risk appetite among investors. Sectorally, Nifty IT rose 0.52%, Consumer Durables gained 0.67%, and Media added 0.47%, whereas Realty declined 0.57% and Metal slipped 0.33%.
Market sentiment was aided by easing crude oil prices and signs of stability in foreign fund flows. Brent crude has fallen sharply over the past week, reducing concerns over India’s current account and balance of payments outlook. Meanwhile, the rupee strengthened further, opening 18 paise higher at 94.42 against the US dollar, boosting expectations that foreign institutional investor (FII) selling could moderate.
V K Vijayakumar, chief investment strategist at Geojit Investments, said the sharp correction in Brent crude prices and the strengthening rupee are positive for Indian equities. He noted that lower oil prices have eased concerns over India’s balance of payments deficit, while expectations of sizeable capital inflows through the FCNR(B) deposit route could support further rupee appreciation and improve foreign investor sentiment.
However, he cautioned that the deficient monsoon remains a near-term concern, particularly from a food inflation perspective, though rainfall activity could improve in the coming weeks and ease market anxiety.
Aakash Shah, Technical Research Analyst at Choice Broking, said Indian markets remained mildly positive, supported by easing geopolitical tensions in West Asia and falling crude oil prices. He noted that the Nifty has extended its rally for three consecutive sessions and continues to trade above key short- and medium-term moving averages, indicating sustained buying interest.
Shah added that while the broader market structure remains constructive, the benchmark index is approaching a key resistance zone that could determine its next directional move.
Asian markets traded mixed after a subdued overnight session on Wall Street, where the Nasdaq Composite and S&P 500 ended lower amid weakness in technology stocks, while the Dow Jones Industrial Average extended its record-setting run. Despite the mixed global cues, domestic investors remained focused on favourable macro developments, including softer crude prices and currency strength.
