Indian markets witnessed a firm start on Wednesday as the Sensex gained over 60 points to start trading at 84,692.31, while the Nifty inched up nearly 60 points to ring the opening bell at 25,994.00.
The top gainers on the 30-share BSE Sensex were stocks such as Trent, Asian Paints, HCLTech, Sun Pharmaceuticals and Reliance, while the laggards included stocks like Bajaj Finserv, Bajaj Finance, Bharat Electronics, Tata Motors and Axis Bank.
In the broader markets, as volatility remained high, the Nifty 100 gained 0.15 per cent and the Nifty Smallcap 250 declined 0.39 per cent. Sectorally, the Nifty Auto index tumbled 0.86 per cent and the Nifty Metal jumped 0.94 per cent.
In the pre-open session at around 9:06 AM, the Sensex was trading a little over 84,600, higher by over 40 points and the Nifty tested 26,000, rising nearly 60 points.
At 8:33 AM, the Gift Nifty was trading at 26,162 or 36.50 points higher, indicating this firm opening of the session.
How Did The Markets Perform Yesterday?
On October 28, the markets witnessed a volatile trading session, as the Nifty slipped below the 25,950 mark. The Sensex declined 150.68 points, or 0.18 per cent, to close at 84,628.16, while the Nifty settled 29.85 points, or 0.11 per cent, lower at 25,936.20.
Most sectoral indices ended in negative territory, dragged down by losses in realty, IT, and FMCG stocks. Gains in metal and banking shares, however, helped limit the overall decline. Broader markets remained largely unchanged, reflecting selective buying rather than a broad-based recovery.
On Tuesday, “The domestic market traded with volatility and ended nearly flat, pressured by profit booking on monthly expiry and subdued global cues,” said Vinod Nair, Head of Research at Geojit Financial Services.
Reason Behind The Uptick
Benchmark indices Sensex and Nifty rebounded in early trade on Wednesday, tracking gains in global markets amid optimism over a possible rate cut by the US Federal Reserve and renewed foreign fund inflows.
Global equity markets remained buoyant, supported by sustained gains in the US. “Globally, stock markets continue to be bullish, aided by the sustained uptrend in the mother market US... Today, the market is likely to get another positive news from the Fed, which is expected to cut rates by 25 bps. More important than the rate decision will be the Fed commentary on quantitative tightening,” said V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
“A dovish tone from the US Federal Reserve could further boost liquidity flows into emerging markets like India, helping the Nifty and Sensex sustain their momentum near record highs,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm.
