Indian equity markets remained poised for a positive start on Wednesday, with benchmark indices trading higher in the pre-open session after Tuesday’s sharp sell-off triggered by heavy losses in IT stocks.
The BSE benchmark started the session near 82,700, climbing 473 points and the Nifty50 surpassed 25,550, nearly 150 points, around 9:15 AM. In the pre-open hour, near 9:11 AM, the Sensex was at 82,530.12, up 304.20 points, while the Nifty stood at 25,512.60, higher by 87.95 points or 0.35 per cent, indicating a rebound at the opening bell. This change in sentiment was driven by a boost in tech stocks, which were the main reason behind the bleeding in the previous session.
On the 30-share Sensex, Tech M, TCS, HCL Tech, Infosys, and PowerGrid opened among the gainers. Meanwhile, the laggards included Bajaj Finance, Asian Paints, Maruti, and UltraTech Cement.
In the broader markets, the Nifty Next50 index jumped 0.65 per cent. Sectorally, the IT and Midsmall IT & Telecom indices led the recovery and soared 2.31 per cent and 1.50 per cent respectively.
The recovery attempt comes after a steep decline in the previous session, when benchmark indices fell more than 1 per cent amid mounting concerns over artificial intelligence-led disruption, rising crude prices and renewed global trade uncertainty.
Global Markets Provide Tailwinds
Firm trends in overseas markets lent additional support to domestic equities. Major Asian indices, including South Korea’s Kospi, Japan’s Nikkei 225, China’s Shanghai SSE Composite and Hong Kong’s Hang Seng, were trading significantly higher. US markets had also ended Tuesday’s session in positive territory, boosting risk appetite.
Institutional Flows And Crude Prices In Focus
On the institutional front, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 102.53 crore on Tuesday, according to exchange data. Domestic Institutional Investors (DIIs), however, remained net buyers, purchasing shares worth Rs 3,161.22 crore, providing some stability to the market.
Meanwhile, Brent crude, the global oil benchmark, rose 0.76 per cent to $71.31 per barrel, keeping energy prices on investors’ radar.
Sensex, Nifty Tumble Over 1% On February 24
On Tuesday, the BSE benchmark crashed more than 1,000 points to settle at 82,225.92, snapping a two-session rally. During the day, the index had dropped as much as 1,359.93 points, or 1.63 per cent, to hit an intra-day low of 81,934.73.
The Nifty declined 288.35 points, or 1.12 per cent, to close at 25,424.65. In intra-day trade, it had fallen 385.40 points, or 1.49 per cent, to a low of 25,327.60. Market breadth remained weak, with 2,802 stocks declining, 1,422 advancing and 143 remaining unchanged on the BSE. Among Nifty constituents, 32 ended in the red while 18 settled higher.
Technology stocks led the slide, reflecting fears that rapid advancements in artificial intelligence could disrupt traditional outsourcing models and compress margins for large IT service providers.
“A nosedive correction in the IT index triggered by mounting concerns over AI-led disruptions, along with low expectations of a US Fed rate cut due to strong US job data and unemployment rates, dampened investor sentiment,” said Vinod Nair, Head of Research at Geojit Investments Limited.