Indian benchmark indices posted modest gains in early trade on Wednesday amid positive global cues, with the stock market appearing to be in a consolidation phase.
As of 9.30 a.m., the Sensex was up 105 points, or 0.12 per cent, at 85,630, while the Nifty gained 40 points, or 0.16 per cent, to trade at 26,217.
Broader market indices outperformed the benchmarks, with the Nifty Midcap 100 rising 0.31 per cent and the Nifty Smallcap 100 adding 0.53 per cent.
Hindalco Industries, Axis Bank and Cipla were among the top gainers on the Nifty, while Tech Mahindra, TCS, Titan Company, Dr Reddy’s Laboratories and Tata Consumer Products were among the laggards.
Among sectoral indices on the NSE, Media, Metal and Realty led the gains, rising around 0.82 per cent, 0.58 per cent and 0.78 per cent, respectively. The Nifty IT index was the top loser, slipping 0.49 per cent.
Market experts said the Nifty could extend its advance towards resistance levels at 26,202 and 26,330, while the 26,000 level is expected to act as near-term support.
They added that while domestic inflows and buying by domestic institutional investors (DIIs) are expected to lend resilience to the market, selling by foreign institutional investors (FIIs) on rallies could limit a sharp breakout. The revival of the AI trade in the US may also influence sentiment towards non-AI markets such as India.
The Reserve Bank of India’s additional open market operations (OMO) of Rs 2 lakh crore are expected to boost liquidity and lower yields, providing positive momentum to credit growth and banking stocks. On Tuesday, the RBI announced fresh measures to inject liquidity into the banking system amid tight conditions.
Asia-Pacific markets traded largely flat with a positive bias, with several indices set to close early due to the Christmas Eve holiday.
In Asian markets, China’s Shanghai Composite rose 0.24 per cent, Shenzhen gained 0.31 per cent, Japan’s Nikkei added 0.06 per cent, Hong Kong’s Hang Seng Index advanced 0.08 per cent, and South Korea’s Kospi edged up 0.12 per cent.
US markets closed mostly higher overnight, with the Nasdaq rising 0.57 per cent, the S&P 500 gaining 0.46 per cent, and the Dow Jones advancing 0.16 per cent.
On Tuesday, FIIs sold equities worth Rs 1,795 crore, while DIIs were net buyers to the tune of Rs 3,812 crore.
–IANS
