Sensex, Nifty open higher after four-session losing streak | Business News - Hindustan Times

After four consecutive sessions of decline, Indian equity markets opened on a positive note on Wednesday, with the BSE Sensex and NSE Nifty both trading higher in early deals. The recovery comes amid cautious optimism as investors track global cues and domestic macroeconomic data. The Sensex opened at 82,345.67, up 245.12 points from the previous close, while the Nifty started at 25,214.30, gaining 72.45 points. The broader market also showed strength, with midcap and smallcap indices trading in the green.

Market analysts attribute the uptick to value buying at lower levels after the recent correction. "The four-session losing streak had pulled indices down by nearly 1.5% from their record highs, making valuations attractive for short-term traders," said a market analyst on condition of anonymity. However, they cautioned that the recovery may be fragile given persistent concerns over global interest rates and geopolitical tensions. The rupee opened flat at 83.42 against the US dollar, while Brent crude oil prices remained above $86 per barrel, adding to inflationary pressures.

Sectorally, banking and IT stocks led the gains, with the Nifty Bank index rising 0.4% and the Nifty IT index up 0.3%. Among individual stocks, Reliance Industries, HDFC Bank, and Infosys were the top contributors to the Sensex gains. On the other hand, defensive sectors like FMCG and pharma traded mixed. The market breadth was positive, with about 1,400 stocks advancing against 900 declining on the BSE.

Investors are now awaiting the release of US inflation data due later this week, which could influence the Federal Reserve's rate decision. Domestically, the focus will be on quarterly earnings from major companies and the progress of the monsoon, which is crucial for agricultural output and rural demand. Analysts suggest that while the short-term outlook remains uncertain, the medium-term fundamentals of the Indian economy stay robust, supported by strong GDP growth and corporate earnings.

Despite the positive opening, market experts remain divided on whether this is the start of a sustained rally or just a temporary bounce. "The underlying sentiment is still cautious, and any negative surprise on the inflation front could trigger another sell-off," noted a fund manager. They advise investors to adopt a stock-specific approach and focus on companies with strong balance sheets and reasonable valuations.

"The four-session losing streak had pulled indices down by nearly 1.5% from their record highs, making valuations attractive for short-term traders," said a market analyst.

For the rest of the day, traders will monitor the movement of foreign institutional investors (FIIs), who have been net sellers in recent sessions. According to exchange data, FIIs sold equities worth ₹3,200 crore in the previous session, while domestic institutional investors (DIIs) bought ₹2,800 crore worth of shares. This divergence highlights the ongoing tug-of-war between foreign and domestic money.

In the coming days, the market is likely to take cues from the US CPI report and the outcome of the Federal Reserve's policy meeting. Any dovish stance could provide a further boost to emerging markets like India. Meanwhile, the government's fiscal deficit target and its impact on bond yields will also be in focus. As the trading day progresses, analysts expect volatility to remain elevated, with key support for the Nifty seen at 25,000 and resistance at 25,400.

For investors looking to navigate these uncertain times, staying informed and diversified is key. To get timely updates and expert insights on market movements, visit MarketToMoney.