Mumbai: Indian frontline indices opened in the green on Wednesday following positive cues from the global markets.
At 9:26 am, Sensex was up 155.81 points or 0.19 per cent at 80,893.32 and Nifty was up 60 points or 0.25 per cent at 24,602.80.
Buying was seen in the midcaps and smallcaps. Nifty midcap 100 index was up 309.30 points or 0.54 per cent at 57,826.40 and Nifty smallcap 100 index was up 88.40 points or 0.49 per cent 18,210.75.
In the Sensex pack, Bharti Airtel, Eternal (Zomato), Tata Motors, M&M, IndusInd Bank, Maruti Suzuki, Tech Mahindra, Bajaj Finance, ITC, HUL and Infosys were top gainers. TCS, Ultratech Cement, ICICI Bank, Titan and Sun Pharma were top losers.
“After the initial flat opening, Nifty may find support at 24,500, followed by 24,400 and 24,300. On the upside, 24,800 is expected to act as immediate resistance, followed by 24,900 and 25,000,” said, Mandar Bhojane, Equity Research Analyst, Choice Broking.
Most Asian stocks were trading in the green. Tokyo, Shanghai, Hong Kong, Seoul and Jakarta were top contributors. US markets closed in the green on Tuesday.
Vikram Kasat from PL Capital said, “Positive Vibes For the first time since February, Nasdaq is back in positive territory for the year, as a broader market rally continued to gain steam.”
On the institutional front, foreign institutional investors (FIIs) continued their selling spree for the third consecutive session on June 3, offloading equities worth Rs 2,853.83 crore. Meanwhile, domestic institutional investors (DIIs) remained net buyers for the 11th consecutive session, investing Rs 5,907.97 crore in equities.
Analysts said that since CPI inflation in India is benign, the RBI rate cutting cycle has more room to go with minimum two more rate cuts in 2025. Even though this will put the margins of the banks under some pressure the leading names in the sector, particularly the large private banks, are well placed to deliver 12 to 15 per cent returns in one year.
“The strong fundamental factors that will support the market are India’s robust and improving macros and sustained flows into mutual funds, particularly the SIP inflows which are steady and growing. This reflects the coming of age of the Indian retail investor,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
(IANS)
