Mumbai: The Indian benchmark indices opened higher on Wednesday, on the back of promising developments in the US-India trade discussions along with strong overnight global cues.
US President Donald Trump’s initiative to improve India-US relations and Prime Minister Narendra Modi’s positive response to the same is a positive cue for the Indian market.
The Sensex was up 334 points or 0.41 per cent at 81,435 in the early morning trade, and the Nifty was up 106 points or 0.43 per cent at 24,975.
The broadcap indices made strong gains, as Nifty Midcap 100 inched up by 0.73 per cent, and the Nifty Small cap 100 moved up 0.71 per cent.
In the Nifty pack, Larsen and Toubro, Kotak Mahindra, Dr Reddys Labs and TCS were the major gainers. The major losers were Hero Motocorp, Maruti Suzuki, Tata Steel and Hindalco.
Among sectoral indices, Nifty IT, the top gainer, jumped 1.88 per cent. Nifty PSU bank and Nifty Realty were the other major gainers. Only Nifty Auto (down 0.33 per cent) and Nifty Consumer durables were in the red.
Nifty on Tuesday faced resistance near the 24,900 level for the second consecutive session. The index formed a small green candle with a long lower shadow on the daily chart, reflecting ongoing consolidation and intraday volatility.
“Nifty continued its upward journey yesterday, rising for the fifth consecutive session and closing at a two-week high. By closing above 24791, Nifty managed to reclaim its level above 50 DEMA. The index has now decisively surpassed its 5, 10, 20, and 50-day DMAs, which is a bullish signal on short-term charts,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.
According to market analysts, buying interest is visible at lower levels, and the 24,900–25,000 zone continues to act as a stiff hurdle. Immediate support is placed at 24,620, and as long as the index trades below 25,000, some consolidation or mild weakness may persist, they said.
US markets made strong gains overnight as the Dow Jones Industrial Average inched up 0.43 per cent, while the Nasdaq advanced by 0.37 per cent and the S&P 500 gained 0.27 per cent. The rally was driven by expectations for Federal Reserve rate cuts following a sharp downward revision to US job data.
The Asian markets were firmly in green during the morning session. China’s Shanghai index advanced 0.17 per cent, and Shenzhen added 0.24 per cent. Japan’s Nikkei was up 0.6 per cent, while Hong Kong’s Hang Seng Index added 0.98 per cent. South Korea’s Kospi inched up 1.55 per cent.
On Tuesday, foreign Institutional Investors (FIIs) snapped their 11-day selling streak by purchasing equities worth Rs 2,050 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 83 crore.
(IANS)
