Indian stock indices opened on a positive note on Wednesday, following a strong rally in the US markets. The NSE Nifty 50 opened 50 points higher, at 23,074.65, marking a 0.22% rise. Similarly, the BSE Sensex gained 185 points, or 0.24%, opening at 76,023.44. The pre-opening session showed even stronger gains with the GIFT Nifty up by 38 points, signaling a positive sentiment in the market.
Sectoral performance showed a favorable trend for tech stocks, with Sun Pharma, Shriram Finance, Infosys, Britannia, and Dr Reddy’s Lab being the top gainers in the Nifty 50. However, stocks like BEL, Tata Motors, Coal India, Tata Steel, and Power Grid Corp underperformed. Infosys, ITC, HCL Tech, Hindustan Unilever, and Apollo Hospitals emerged as key contributors to the rise in the Nifty.
Akshay Chinchalkar, Head of Research at Axis Securities, pointed out that the Nifty faces resistance at 23,324, with further resistance at the 23,440 – 23,471 zone. He added that although a bearish flag pattern was confirmed recently, the downside risks are not yet at an extreme level. He highlighted the potential target of 22,830 for the bearish flag.
Meanwhile, Cyient DLM’s stock fell 12% due to a 41% year-on-year drop in net profit for Q3 FY25. The company’s EBITDA also fell by 4%, and its margin narrowed to 6.3% from 9.2% in the previous year.
In terms of market breadth, the data from the NSE showed that out of 2,255 stocks traded, 614 were in the green, while 1,579 stocks declined. The Nifty Realty index was down 2.3% as it continued to slide for the second consecutive session.
The Nifty Midcap 100 index opened with a modest gain of 83 points, while the Bank Nifty rose 88 points. Analysts have noted that the market is currently down around 12% from its September 2024 highs, offering a buying opportunity for long-term investors. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized that patience and a focus on quality stocks are crucial for success in these market conditions.
