Equity benchmark indices, Sensex and Nifty, experienced an upward movement in early trading on Wednesday, driven by increased investment in IT stocks and a surge in the US markets.
The BSE Sensex rose by 338.1 points, reaching 79,814.73, while the NSE Nifty increased by 101.5 points to 24,314.80.
Among the 30 stocks in the Sensex, the most significant gainers included HCL Technologies, Sun Pharma, Infosys, Bajaj Finance, Bajaj Finserv, Maruti, NTPC, Tech Mahindra, and Tata Consultancy Services.
Conversely, Titan, Tata Steel, Hindustan Unilever, and JSW Steel were noted as laggards.
In the Asian markets, Tokyo and Shanghai showed positive performance, whereas Seoul and Hong Kong reported declines.
Wall Street concluded sharply higher on Tuesday.
The global oil benchmark, Brent crude, fell by 0.94 percent to USD 74.82 per barrel.
Foreign Institutional Investors (FIIs) sold equities amounting to Rs 2,569.41 crore on Tuesday, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 3,030.96 crore, as per exchange data.
“The significant rebound in the market yesterday suggests a pause in the downward trend observed over the past several days. The fact that this rebound is primarily driven by fundamentally strong and fairly valued large banking stocks is noteworthy and indicates the potential for a continuation of this trend.
“Nevertheless, the weak earnings growth in Q2 and the downgrades in earnings forecasts for FY25 present challenges that may hinder a sustained rally,” stated V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He further noted that the commotion surrounding the US elections will be short-lived, after which economic fundamentals will play a crucial role in determining the market’s direction.
Following a significant decline on Monday, the BSE benchmark surged by 694.39 points, or 0.88 percent, to close at 79,476.63 on Tuesday. The Nifty also rose by 217.95 points, or 0.91 percent, to reach 24,213.30.
