Equity markets saw a positive start on Wednesday, with a continuation of gains from the previous session. The optimism was driven by foreign institutional investors (FIIs) turning net buyers after 23 consecutive sessions of selling, along with growing hopes of easing US-China trade tensions.
The Sensex opened higher at 78,704.60, compared to its previous close of 78,583.81, and is currently trading at 78,657.27, up by 73.46 points or 0.09 per cent. Similarly, the Nifty opened at 23,738.40 against its previous close of 23,739.25 and is now at 23,792.20, gaining 52.95 points or 0.22 per cent.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the significance of FIIs turning buyers in the cash market for the first time since January 2nd. FIIs bought equities worth ₹809 crores on Tuesday, while domestic institutional investors (DIIs) sold shares worth ₹430 crores.
The oil & gas sector led the gains, with BPCL surging 3.32 per cent and ONGC rising 2.44 per cent. Other top gainers included IndusInd Bank (+1.97 per cent), Coal India (+1.51 per cent), and Tata Motors (+1.40 per cent). However, consumer stocks faced selling pressure, with Asian Paints dropping 4.39 per cent, followed by Nestlé India (-2.59 per cent) and Titan (-1.83 per cent).
Vikas Jain, Head of Research at Reliance Securities, noted the breakout in Nifty-50 and identified 24,000 as a significant resistance level. He also highlighted the outperformance of Bank Nifty, driven by PSU Banks.
Despite the positive sentiment, caution was advised by Hardik Matalia, Derivative analyst at Choice Broking, due to expected volatility in the market. He suggested buying on dips as long as the Nifty index holds above 23,300.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, recommended a bullish approach for day traders, emphasizing key support zones at 23,600/78100 and 23,500/77800.
VLA Ambala, Co-Founder of Stock Market Today, raised concerns about potential headwinds such as the slump in crude oil prices and the depreciation of the INR. These issues could impact inflation and add to the fixed costs for the manufacturing sector.
The market sentiment was boosted by US President Trump’s decision to delay tariffs on Mexico and Canada, although worries persisted as China announced retaliatory tariffs on US goods. Gold prices surged to a record high of $2,848 per ounce as investors sought safe-haven assets. Meanwhile, crude oil prices steadied at $76 per barrel.
Investors are closely monitoring the Reserve Bank of India’s monetary policy committee meeting, with expectations of a rate cut following the Union Budget’s focus on boosting consumption. Key companies like Info Edge, Zydus Lifesciences, Swiggy, and Cummins India are set to announce their quarterly results today. Market participants will also be keeping an eye on banking, real estate, auto, and NBFC stocks ahead of the RBI’s policy announcement on Friday.
