Benchmark indices, Nifty and Sensex scaled fresh record highs on Wednesday, with Sensex surpassing 80,000 for the first time on the strength of banking and FMCG stocks.
It was 80,013.77, up 572.32 points or 0.72 per cent at the time of filing this report. Nifty also opened at 24,291.75, up 168 points or 0.70 per cent.
Bank Nifty opened in green territory with an increase of 704 points or 1.35 per cent at 52 872.30 whereas the Nifty Midcap opened at 56149.90, an up of 295.20 or 0.53 per cent increase.
Among the sectoral indices on the National Stock Exchange (NSE), Auto, Financial Services, FMCG, Media, Pharma, PSU Bank, Private Ban, Realty, Healthcare, Consumer Durables, Oil and Gas, And Nifty Midsamall Healthcare opened in the red.
On the other hand, only IT stocks traded in red in the initial opening hours.
On NSE, the biggest gainers were HDFC Bank, Britannia, HDFC Life, Tata Consumer, and Kotak Bank, and among the Losers in the initial hours of the market were TCS, Sun Pharma, Ultra Cement, Tech Mahindra.
“Higher global markets are setting up a positive open for Indian markets today. Fed Chairperson Powell’s comments gave a boost to US markets with a rate cut in September and December being factored in, even though Powell did not allude to any imminent rate cut. US Treasury yields dropped as well. Positive Asian markets this morning are continuing the advance led by the US markets in Tuesday trading, said Ajay Bagga, Market and Banking expert.
“Overall looking like a positive day for Indian markets. IT stocks are rerating in anticipation of a bottom having been formed in sentiment towards the sector and in expectation of better management guidance this result season. Financials, especially NBFCs and PSU banks were a drag in yesterday’s trading, leadership mantle is moving to lead private sector banks now,” he said.
“The latest Fedspeak on US inflation is also positive news for equity markets globally. Responding to the inflation print of 2.6 per cent with zero month-on-month increase Fed chief Powell yesterday made a dovish remark that the US is on a disinflationary path. The Fed’s next rate action is likely to be a rate cut. RBI also is likely to follow suit with a rate cut in the next policy meeting, said Dr V K Vijayakumar, Chief Investment Strategist, at Geojit Financial Services.
The Nifty 50 index scaled a fresh high on Wednesday, indicating continuation of an upward trend. An intraday move over 24300 could spark a sharp upside to 24400. The broader outlook remains positive, with the index seeking to reach the 24500 level. The immediate support exists at 24000, followed by 23500. Only a breach of 23500 could derail the positive bias. The trend remains upward until the upward rising trend line on the daily chart continues to support the bullish trend, said Avdhut Bagkar, Derivatives and Technical Analyst, StoxBox.
On Tuesday, domestic equity indices ended with minor losses due to profit booking at record highs reached during the session. The Sensex declined by 34.74 points to close at 79,441.45, while the Nifty 50 decreased by 18.10 points, or 0.07 per cent, settling at 24,123.85. Despite this, the overall trend for Nifty remains positive, with further consolidation or minor dips seen as potential buying opportunities, following a bullish pattern of higher tops and bottoms.