India’s benchmark indices opened on a cautious note on Wednesday, reflecting the subdued sentiment in Asian markets.
The Nifty rose by 10.30 points to start at 24,204.80, while the Sensex gained 122 points, opening at 80,121.03.
In early trade, Coal India, Adani Enterprises, Mahindra & Mahindra, Adani Ports, and Kotak Mahindra Bank emerged as the top gainers, while IndusInd Bank, Cipla, Tata Consumer Products, Bharti Airtel, and UltraTech Cement were among the major laggards.
Among sectoral indices, the Auto and IT sectors opened in the green, while banking, financial services, FMCG, media, pharma, PSU, private banks, realty, healthcare, and consumer sectors saw declines.
The Nifty IT index hit a record high on Tuesday despite broader market consolidation. However, sentiment around the Adani Group remained cautious, as Fitch and Moody’s downgraded the outlook for several of its companies to “negative,” citing rising legal and governance risks.
Foreign Institutional Investors (FIIs) turned net buyers, reversing a long stretch of selling, partly due to MSCI rebalancing. Market experts suggest that the near-term outlook for the domestic market remains positive.
Ajay Bagga, a market and banking expert, said, “Israel and Hezbollah have agreed to a US-mediated 60-day ceasefire. This is positive for the markets, as it raises hopes for some agreement to stop the fighting in Gaza and sharply reduces the risks of Iran widening the Middle East conflict.”
“Nifty futures are pointing to a flat to slightly positive start this morning. We expect Indian markets to trend upwards in the December series as seasonality, better earnings in H2 FY2025, and better global cues set the stage for a slow and steady recovery,” he added.
Varun Aggarwal, MD of Profit Idea, said that IT stocks and Adani Group companies are likely to remain in focus.
Globally, Asian equities faced pressure due to concerns over potential US tariffs, with President-elect Donald Trump planning to impose levies on China, Mexico, and Canada. Despite this, US stocks hit record highs, with the S&P 500 rising 0.6 percent and the Dow Jones gaining 0.3 percent.
(With ANI input)
