Nifty and Sensex gave up on their early gains on Wednesday, but managed to close slightly higher, pushed by gains from realty, financial services (ex-banks) and pharmaceutical stocks.
The 50-component index Nifty 50 closed at 24,813.45, higher by 129.55 points or 0.52%, while the S&P BSE Sensex ended the day, rising by 410.19 points or 0.51% at 81,596.63.
Meanwhile, the banking gauge Nifty Bank settled at 55,075.10, gaining 198 points or 0.36%.
The market capitalisation of all the BSE-listed companies increased by Rs 2.26 lakh crore.
Market movers
The market breadth was skewed in favour of the gainers as 1,753 stocks ended in the green, 1,095 in the red, while 93 remained unchanged.
In the Nifty 50 pack, 37 stocks advanced, while 13 declined as BEL, Tata Steel and Cipla emerged as the top gainers. The top losers of the index were IndusInd Bank, JSW Steel and Kotak Mahindra Bank.
Among individual stocks, Tata Teleservices, Trident Ltd, and JK Tyre and Banco Products were among the top gainers, surging up to 20% in today’s session while the shares of Fineotex Chemical, Dixon Technologies, among others, ended up in the red.
Sector watch
On the sectoral front, Nifty Realty surged the most, shooting up by 1.75%, followed by the Nifty Pharma index, which climbed by 1.25%. Meanwhile, the Nifty Financial Services (ex-banks) rose 1.16%.
Nifty Consumer Durables index was the only one to close on the negative side, with a loss of 0.49%.
Expert view
“Markets exhibited a broadly positive undertone today; however, overall sentiment remained confined within a narrow range, indicating risk of 'sell on rallies' strategy in the near future amid escalating uncertainty around India-US trade negotiations. There is a growing perception that India may not derive the anticipated benefits initially projected during the peak of the tariff war, which has since de-escalated,” said Vinod Nair, Head of Research at Geojit Investments.
He added, “FIIs turned net sellers due to the concerns over the recent U.S. credit rating downgrade, tax cut plans in the U.S. that could significantly widen the fiscal deficit, and their effect on the upcoming Fed policy next month. This change in stance hints at an increased probability of emerging risk-averse sentiment in the near term”.
Ajit Mishra, SVP of Research at Religare Broking, said, “The recent price action in the Nifty indicates that the bulls are making a strong effort to sustain the prevailing uptrend. Participants are advised to align their positions accordingly, focusing more on stock selection based on relative strength. Dips should be seen as an opportunity to gradually accumulate quality stocks. Among key sectors, pharma, realty, metals, and banking are preferred, while a selective approach is recommended for the rest.
Global markets
The Nikkei 225 index of Japan was down by 0.61% at 37,298.98 as traders locked in recent gains and appreciation in the yen sapped demand for exporters, while Hong Kong’s Hang Seng closed 0.62% higher at 37,298.98, led by mining and battery shares, as a rally in gold prices and the strong Hong Kong debut of CATL boosted sentiment.
The FTSE 100 index of the UK, meanwhile, was trading 0.04% lower at 8,777.49 around 4:20 pm IST.
The Dow Jones index as well as the S&P 500 were down by 0.27% and 0.39% respectively, while the Nasdaq was trading 0.38% lower at 19,142.71.
Currency Watch
The Indian Rupee has faced recent headwinds, becoming one of the worst performers among Asian currencies. This depreciation is attributed to concerns over rising COVID-19 cases in some Asian regions, foreign fund outflows from domestic equities, higher global bond yields, and a general downturn in market sentiment.
“Looking ahead, the spot USDINR pair is anticipated to encounter resistance around the 86-level, with support identified at 84.95 in the near term,” believes Dilip Parmar, Senior Research Analyst at HDFC Securities
Other Asian currencies rose between 0.1% to 0.6% as the dollar index drooped to a two-week low before paring losses to last quote at 99.6.
The dollar has been weighed down by concerns about U.S. fiscal policy and fading optimism about the cooling of trade tensions, as investors await details on signs of progress on trade talks.
Crude impact
Oil prices rose more than 1% on Wednesday after reports that Israel could be preparing to strike Iranian nuclear facilities raised fears of a supply disruption in the Middle East.
Brent futures rose 79 cents, or 1.2%, to $66.17 a barrel by 1018 GMT. U.S. West Texas Intermediate crude jumped 82 cents, or 1.3%, to $62.85.
Considering Iran exports more than 1.5 million barrels per day (bpd), fears of supply disruptions have helped to drive prices higher. Iran is the third-largest producer among the members of the Organization of the Petroleum Exporting Countries (OPEC) and an Israeli attack could upset flows from the country.
There are also concerns that Iran could retaliate by blocking oil tanker flows through the Strait of Hormuz, through which Saudi Arabia, Kuwait, Iraq and the United Arab Emirates export crude oil and fuel.
(With inputs from agencies)
The 50-component index Nifty 50 closed at 24,813.45, higher by 129.55 points or 0.52%, while the S&P BSE Sensex ended the day, rising by 410.19 points or 0.51% at 81,596.63.
Meanwhile, the banking gauge Nifty Bank settled at 55,075.10, gaining 198 points or 0.36%.
The market capitalisation of all the BSE-listed companies increased by Rs 2.26 lakh crore.
Market movers
The market breadth was skewed in favour of the gainers as 1,753 stocks ended in the green, 1,095 in the red, while 93 remained unchanged.
In the Nifty 50 pack, 37 stocks advanced, while 13 declined as BEL, Tata Steel and Cipla emerged as the top gainers. The top losers of the index were IndusInd Bank, JSW Steel and Kotak Mahindra Bank.
Among individual stocks, Tata Teleservices, Trident Ltd, and JK Tyre and Banco Products were among the top gainers, surging up to 20% in today’s session while the shares of Fineotex Chemical, Dixon Technologies, among others, ended up in the red.
Sector watch
On the sectoral front, Nifty Realty surged the most, shooting up by 1.75%, followed by the Nifty Pharma index, which climbed by 1.25%. Meanwhile, the Nifty Financial Services (ex-banks) rose 1.16%.
Nifty Consumer Durables index was the only one to close on the negative side, with a loss of 0.49%.
Expert view
“Markets exhibited a broadly positive undertone today; however, overall sentiment remained confined within a narrow range, indicating risk of 'sell on rallies' strategy in the near future amid escalating uncertainty around India-US trade negotiations. There is a growing perception that India may not derive the anticipated benefits initially projected during the peak of the tariff war, which has since de-escalated,” said Vinod Nair, Head of Research at Geojit Investments.
He added, “FIIs turned net sellers due to the concerns over the recent U.S. credit rating downgrade, tax cut plans in the U.S. that could significantly widen the fiscal deficit, and their effect on the upcoming Fed policy next month. This change in stance hints at an increased probability of emerging risk-averse sentiment in the near term”.
Ajit Mishra, SVP of Research at Religare Broking, said, “The recent price action in the Nifty indicates that the bulls are making a strong effort to sustain the prevailing uptrend. Participants are advised to align their positions accordingly, focusing more on stock selection based on relative strength. Dips should be seen as an opportunity to gradually accumulate quality stocks. Among key sectors, pharma, realty, metals, and banking are preferred, while a selective approach is recommended for the rest.
Global markets
The Nikkei 225 index of Japan was down by 0.61% at 37,298.98 as traders locked in recent gains and appreciation in the yen sapped demand for exporters, while Hong Kong’s Hang Seng closed 0.62% higher at 37,298.98, led by mining and battery shares, as a rally in gold prices and the strong Hong Kong debut of CATL boosted sentiment.
The FTSE 100 index of the UK, meanwhile, was trading 0.04% lower at 8,777.49 around 4:20 pm IST.
The Dow Jones index as well as the S&P 500 were down by 0.27% and 0.39% respectively, while the Nasdaq was trading 0.38% lower at 19,142.71.
Currency Watch
The Indian Rupee has faced recent headwinds, becoming one of the worst performers among Asian currencies. This depreciation is attributed to concerns over rising COVID-19 cases in some Asian regions, foreign fund outflows from domestic equities, higher global bond yields, and a general downturn in market sentiment.
“Looking ahead, the spot USDINR pair is anticipated to encounter resistance around the 86-level, with support identified at 84.95 in the near term,” believes Dilip Parmar, Senior Research Analyst at HDFC Securities
Other Asian currencies rose between 0.1% to 0.6% as the dollar index drooped to a two-week low before paring losses to last quote at 99.6.
The dollar has been weighed down by concerns about U.S. fiscal policy and fading optimism about the cooling of trade tensions, as investors await details on signs of progress on trade talks.
Crude impact
Oil prices rose more than 1% on Wednesday after reports that Israel could be preparing to strike Iranian nuclear facilities raised fears of a supply disruption in the Middle East.
Brent futures rose 79 cents, or 1.2%, to $66.17 a barrel by 1018 GMT. U.S. West Texas Intermediate crude jumped 82 cents, or 1.3%, to $62.85.
Considering Iran exports more than 1.5 million barrels per day (bpd), fears of supply disruptions have helped to drive prices higher. Iran is the third-largest producer among the members of the Organization of the Petroleum Exporting Countries (OPEC) and an Israeli attack could upset flows from the country.
There are also concerns that Iran could retaliate by blocking oil tanker flows through the Strait of Hormuz, through which Saudi Arabia, Kuwait, Iraq and the United Arab Emirates export crude oil and fuel.
(With inputs from agencies)
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