India’s benchmark indices opened on a cautious note on Wednesday, with marginal gains dampened by selling pressure from Foreign Institutional Investors (FIIs).
The Nifty rose by 38.75 points, or 0.16 percent, to open at 23,746.65, while the Sensex added 120.45 points, or 0.15 percent, starting at 78,319.56.
Experts suggest that the market is unlikely to see a significant recovery in the near term, although corporate earnings and the upcoming Union Budget could offer some support.
Ajay Bagga, a banking and market expert, said: “Indian markets are struggling with lowered GDP growth estimates of 6.4 percent in FY2025 versus 8.2 percent in FY2024. With major financial institutions giving moderate operating updates for the Oct-Dec quarter, the markets are seeing continued FPI selling in key sectors like financials. Overall the mood stays cautious and stock markets will be dependent on individual corporate earnings and the Union Budget to lift the sentiment”.
Among sectoral indices, only Nifty Pharma and Nifty Oil and Gas opened with gains, while the remaining indices saw declines in early trade.
In the Nifty 50 list, 13 stocks advanced, 37 declined, and one remained unchanged. The top gainers included Dr. Reddy’s, ONGC, Reliance, Cipla, and Maruti, while Trent, Shri Ram Finance, Adani Ports, BEL, and Tech Mahindra were among the top losers.
Akshay Chinchalkar, Head of Research at Axis Securities, said: “The Nifty’s rally in the previous session helped trace a so-called “bullish harami” pattern, but the long upper shadow meant nervousness persists. That means bulls will have to, at minimum, push the market above yesterday’s high of 23795 to validate the formation. That said, the falling 100-day and the rising 200-day averages are creating a resistance area between 23915 and 24100, which is also where the 24000-call strike for weekly expiration tomorrow is seeing high concentration.”
Broader Asian markets showed a mixed trend. South Korea’s KOSPI surged more than 1.2 percent, and Singapore’s Straits Times rose 0.5 percent. However, other markets faced downward pressure, with Hong Kong’s Hang Seng down 1.3 percent, China’s Shanghai Composite falling over 1 percent, and Japan’s Nikkei 225 declining 0.35 percent.
(With inputs from ANI)
