Mumbai: Indian stock markets traded higher on Wednesday with equity benchmarks rising around 0.7 per cent each in early deals amid buying in FMCG, banking, cement and auto stocks.
Nifty was at an intraday high of 23,281, an increase of 162 points or 0.70 per cent in morning trade, while Sensex rose over 500 points or 0.67 per cent to 74,505.
Sector-wise, Nifty FMCG, Nifty PSU Bank, Nifty Cement and Nifty Auto were top gainers which gained up to 1.45 per cent.
Meanwhile, Nifty Oil & Gas rose 0.54 per cent, while Nifty Private Bank gained 0.33 per cent.
On the other hand, Nifty MidSmall IT & Telecom fell 0.68 per cent, while Nifty MidSmall Healthcare, Nifty500 Healthcare, Nifty Pharma and Nifty Chemicals declined between 0.18 per cent and 0.51 per cent.
According to market experts, the market structure remained weak with elevated US bond yields and high crude oil prices weighing on sentiment.
“Foreign institutional investors have remained sellers over the past five sessions, and could continue to sell on rallies as the US 10-year Treasury yield remains elevated,” they said.
Analysts said the US Federal Reserve’s expected 25-basis-point rate hike was largely priced in making its commentary on the economic outlook and future rate actions more important for markets.
Despite the broader weakness, experts said stock-specific opportunities remained, with the appointment of a new MD and CEO at HDFC Bank and new NPCI norms for digital transactions among events that could influence the market.
On the technical front, experts said the inability of the Nifty to sustain above 23,515 had invalidated the recent upside attempt. Consecutive closes below the lower Bollinger Band and Tuesday’s bearish engulfing candle reflected strong bearishness, although they also suggested that fear may be peaking.
Nifty remains within the 23,260-23,000 support band, offering hopes of a revival. A close below this zone could bring the 22,600-21,800 range into focus, they said.
(IANS)
