Mumbai: Domestic stock markets on Wednesday opened sharply higher with a gap-up start, tracking positive global cues from the US and Asian markets amid hopes of de-escalation in the West Asia conflict — now in the 33rd day of the conflict.
The 50-scrip Nifty opened at 22,899, rising 567 points or 2.54 per cent, while Sensex began the session up 1,814 points, or 2.52 per cent, at 73,762.43.
Sector-wise, all indices traded in green, led by gains in banking, auto and IT stocks. On the broader indices front too, markets showed strong momentum, with midcap and smallcap indices advancing over 2-3 per cent.
US President Donald Trump has indicated that the American military could halt attacks on Iran within the next three weeks. He also said that Tehran may not need to strike a deal as a precondition for the conflict to wind down. On the other side, Iran has issued a warning that prominent American corporations could face retaliation if Iranian figures continue to be killed.
Notably, headline indices had declined more than 10 per cent during March amid heightened geopolitical tensions.
According to analysts, given ongoing global uncertainties and elevated volatility, investors should adopt a cautious and selective approach.
“It may be prudent to accumulate fundamentally strong stocks during market corrections,” analysts said.
They added that fresh long positions should ideally be initiated only after the Nifty decisively breaks above and sustains the 24,000 level, which would signal improved sentiment and a more durable bullish trend.
Auto stocks are expected to remain in focus as companies release their sales numbers.
On the institutional front, foreign institutional investors (FIIs) sold equities worth Rs 11,163 crore on Monday, extending their selling streak through March. In contrast, domestic institutional investors (DIIs) bought equities worth Rs 14,894 crore.
Globally, Wall Street ended on a mixed note, with the S&P 500 closing about 3 per cent lower, while the Nasdaq gaining nearly 4 per cent.
In Asia, Japan’s Nikkei traded over 4 per cent higher, Hong Kong’s Hang Seng rose more than 2 per cent, and South Korea’s KOSPI surged over 6 per cent.
In the commodities segment, crude oil prices edged higher. Brent crude futures rose 1.81 per cent to $105.86 per barrel, while US West Texas Intermediate (WTI) futures were up 1.90 per cent at $103.31.
(IANS)
