Equity markets started the day on a positive note on Wednesday, following upbeat global cues. This was influenced by U.S. President Donald Trump’s hint at imposing lower tariffs on Chinese imports and his renewed focus on investments in artificial intelligence, which boosted technology stocks around the world.
The Sensex opened higher at 76,114.42, up from its previous close of 75,838.36, and is currently trading at 76,057.57, marking a gain of 219.21 points or 0.29 percent. Similarly, the Nifty opened at 23,099.15 compared to its previous close of 23,024.65 and is currently at 23,072.40, up by 47.75 points or 0.21 percent.
Vikas Jain, Head of Research at Reliance Securities, commented on the market’s reaction to Trump’s tariff announcement, stating that while the threat of a 10 percent tariff on Chinese imports is lower than expected, concerns over FII selling and weak quarterly results continue to impact sentiment.
Tech stocks led the gains, with Wipro surging by 1.89 percent, followed by Infosys at 1.52 percent, and TCS at 1.12 percent. This surge in tech shares can be attributed to the increased focus on AI investments highlighted by Trump, contributing to a positive outlook for the sector globally.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized that the current correction presents a good opportunity for long-term investors to acquire quality stocks at fair valuations, urging patience for success.
However, on the downside, Bharat Electronics witnessed a decline of 2.31 percent, while Tata Motors dropped by 1.84 percent. Other losers included Power Grid, Coal India, and Adani Enterprises, which fell between 1.47 percent and 1.75 percent.
The market’s volatility index, India VIX, reached a six-month high of 17.28, indicating increased uncertainty. While FIIs continued to be net sellers on January 21, offloading equities worth Rs 5,920 crore, domestic institutions bought shares worth Rs 3,500 crore.
In the commodities market, gold maintained its position near an 11-week high at $2,745, supported by geopolitical tensions and a weaker dollar. On the other hand, crude oil prices experienced volatility following Trump’s inauguration speech, which emphasized increased oil production. Prices dipped below $76 per barrel as the President’s plans to boost oil and gas production and exports affected the market.
Technical analysts are approaching the market with caution, expecting the ongoing weakness to persist. Sameet Chavan, Head of Research at Angel One, noted the immediate support at 22,900 and resistance at 23,200.
Looking ahead, investors are eagerly awaiting the quarterly results from major companies such as HDFC Bank, HUL, and BPCL, as these could sway market direction. Additionally, events like the upcoming Federal Reserve meeting, the Union Budget, and Delhi elections are expected to keep volatility levels high in the near term.
