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The Sensex and Nifty indices saw an increase in early trading on Wednesday, driven by buying interest in IT stocks and a positive influence from the recent rally in US markets, as per PTI. The BSE Sensex rose by 338.1 points, reaching 79,814.73 in the morning session, while the NSE Nifty gained 101.5 points, climbing to 24,314.80.
According to PTI, key IT stocks contributed significantly to the upward trend, with shares of HCL Technologies, Infosys, Tech Mahindra, and Tata Consultancy Services among the leading gainers. Other notable gainers within the 30-share Sensex pack included Sun Pharma, Bajaj Finance, Bajaj Finserv, Maruti, and NTPC. On the other hand, Titan, Tata Steel, Hindustan Unilever, and JSW Steel were among the stocks facing downward pressure.
Meanwhile, Asian markets displayed a mixed performance. According to PTI, Tokyo and Shanghai registered gains, while Seoul and Hong Kong markets quoted lower. In the United States, Wall Street closed with a sharp rise on Tuesday, contributing to a positive sentiment in the global markets. Additionally, Brent crude, the global oil benchmark, saw a decrease of 0.94 percent, bringing it to USD 74.82 per barrel.
On the institutional investment front, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,569.41 crore on Tuesday, while Domestic Institutional Investors (DIIs) made net purchases worth Rs 3,030.96 crore, PTI reported.
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According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, Tuesday's market rebound could signify a pause in the recent downtrend observed over the last few days. He highlighted that the resurgence in the market is being led by well-valued, fundamentally strong banking stocks, which may help sustain this positive momentum. However, Vijayakumar cautioned that weak earnings growth in the second quarter and earnings downgrades projected for FY25 could pose challenges, potentially limiting the strength of any prolonged rally.
He also noted that while the US election-related noise could impact markets for a few days, it is the economic fundamentals that will ultimately drive future market trends, according to PTI.
The rebound comes after Monday's steep decline. On Tuesday, the BSE benchmark jumped by 694.39 points, or 0.88 percent, to close at 79,476.63, while the Nifty index rose by 217.95 points, or 0.91 percent, to settle at 24,213.30, as per PTI.
(With inputs from PTI)
