The Indian stock market opened on a steady note on Wednesday after witnessing a strong rally driven by easing US trade tariff tensions. The benchmark indices traded almost flat in early deals, with the Sensex gaining 120.79 points or 0.15% to start at 78,704.60, while the Nifty 50 opened at 23,801.75, up 62.50 points or 0.26%.
Key contributors to the Nifty 50’s gains included HDFC Bank, Infosys, Oil and Natural Gas Corp, Tata Consultancy Services, and Bharat Petroleum Corp. However, stocks such as Asian Paints, Larsen & Toubro, Titan, and Nestle India exerted pressure on the index.
Among sectoral indices, nine out of 12 sectors advanced on the NSE, while three declined. The NSE Nifty Oil & Gas index recorded the highest gains, whereas the NSE Nifty FMCG index suffered the most losses. Meanwhile, the BSE Midcap and Smallcap indices traded in positive territory.
Market analysts said that after a positive start, Nifty could find support around 23,600, while resistance levels are expected at 23,800, followed by 23,900 and 24,000. Foreign institutional investors (FIIs), who had been net sellers for 23 consecutive sessions, turned net buyers on February 4, purchasing equities worth ₹809 crore. On the other hand, domestic institutional investors (DIIs), after remaining net buyers for 35 sessions, turned net sellers, offloading equities worth ₹430 crore.
The strong buying interest helped the Nifty close above the 23,700 mark, with global markets also reflecting a positive sentiment. According to Sameet Chavan of Angel One, the US decision to pause tariff hikes triggered a recovery in US futures, which set an optimistic tone for Asian markets. While market momentum remains strong, he cautioned that key resistance levels at 23,900 (89-day exponential moving average), 24,000 (200-day simple moving average), and 24,250 (previous swing high) need to be closely monitored.
With a robust Union Budget already announced, investor focus now shifts to the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting on February 7, where expectations of a possible rate cut remain high.
-IANS
