Dalal Street opens in green as banks lead gains, crude stays above $85
The S&P BSE Sensex rose 530.01 points to 77,584.95, while the NSE Nifty50 gained 145.10 points to 24,197.15 as of 9:30 am.
Benchmark stock market indices opened higher on Wednesday, led by strong buying in banking and financial stocks after softer-than-expected US inflation data boosted investor sentiment and lifted Asian markets. However, gains remained capped amid continued geopolitical tensions in the Middle East and weakness in IT shares.
The S&P BSE Sensex rose 530.01 points to 77,584.95, while the NSE Nifty50 gained 145.10 points to 24,197.15 as of 9:30 am.
The rally came after US inflation eased more than expected, reducing concerns over further interest rate hikes by the Federal Reserve and improving risk appetite across global markets.
However, investors remained cautious as tensions between the US and Iran continued to simmer, with the two countries exchanging strikes and battling for control of the Strait of Hormuz. Brent crude remained elevated at $85.63 per barrel, up 1.06%, while WTI crude traded at $79.85, up 0.64%.
The rupee opened largely unchanged at 96.1725 against the US dollar, compared with its previous close of 96.20.
BANKING, FINANCIAL STOCKS LEAD GAINS
The broader market also traded firmly in the green. The Nifty 100 gained 0.62%, Nifty 200 rose 0.61%, Nifty 500 climbed 0.62%, while the Nifty Midcap 100 advanced 0.57%. The Nifty Smallcap 100 outperformed with a gain of 0.82%. Meanwhile, India VIX fell 3.74%, signalling easing market volatility.
Among sectoral indices, Nifty Financial Services Ex-Bank gained 1.24%, followed by Nifty Private Bank (1.11%), Nifty Financial Services (1.10%), Nifty PSU Bank (1.05%), Nifty Realty (0.91%), Nifty Oil & Gas (0.68%) and Nifty Auto (0.65%). On the other hand, Nifty IT slipped 0.24%, Nifty Media fell 0.30% and Nifty Metal edged down 0.18%.
Among Sensex constituents, Bajaj Finance emerged as the top gainer, rising 2.46%. Axis Bank climbed 1.92%, InterGlobe Aviation gained 1.76%, UltraTech Cement rose 1.44%, Reliance Industries added 1.24% and ICICI Bank advanced 1.21%.
On the losing side, TCS declined 0.83%, Infosys slipped 0.53%, Power Grid fell 0.37%, Hindustan Unilever lost 0.29% and Tata Steel edged down 0.24%.
GEOPOLITICAL RISKS REMAIN A KEY OVERHANG
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said uncertainty surrounding West Asia continues to cloud the market outlook despite encouraging domestic fundamentals.
"With the uncertainties in West Asia continuing and Brent crude trading around $86, there are no positives that can lift the market higher in the near-term. President Trump’s notoriously irresponsible comments also continue, this time about a charge on countries for U.S. assistance to ships transiting through the Strait of Hormuz. Soon Trump made a U turn on this, replacing the proposed charge with 'investments in the U.S.' With this kind of leadership, total uncertainty has become the new normal, rendering investment decisions extremely challenging.
"In India, there are other challenges like rising CPI inflation (4.38% in June) and deficiency in monsoon which has reached 18%. On the positive side, credit growth in the economy continues to be strong and demand in sectors like automobiles continues to be robust. The best strategy during totally uncertain and complex times like these is to remain invested and continuing to invest in stocks in growth sectors which are fairly valued. Q1 results of leading banks, NBFCs and auto stocks will be good. Digital platform companies are likely to report good growth numbers."
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Benchmark stock market indices opened higher on Wednesday, led by strong buying in banking and financial stocks after softer-than-expected US inflation data boosted investor sentiment and lifted Asian markets. However, gains remained capped amid continued geopolitical tensions in the Middle East and weakness in IT shares.
The S&P BSE Sensex rose 530.01 points to 77,584.95, while the NSE Nifty50 gained 145.10 points to 24,197.15 as of 9:30 am.
The rally came after US inflation eased more than expected, reducing concerns over further interest rate hikes by the Federal Reserve and improving risk appetite across global markets.
However, investors remained cautious as tensions between the US and Iran continued to simmer, with the two countries exchanging strikes and battling for control of the Strait of Hormuz. Brent crude remained elevated at $85.63 per barrel, up 1.06%, while WTI crude traded at $79.85, up 0.64%.
The rupee opened largely unchanged at 96.1725 against the US dollar, compared with its previous close of 96.20.
BANKING, FINANCIAL STOCKS LEAD GAINS
The broader market also traded firmly in the green. The Nifty 100 gained 0.62%, Nifty 200 rose 0.61%, Nifty 500 climbed 0.62%, while the Nifty Midcap 100 advanced 0.57%. The Nifty Smallcap 100 outperformed with a gain of 0.82%. Meanwhile, India VIX fell 3.74%, signalling easing market volatility.
Among sectoral indices, Nifty Financial Services Ex-Bank gained 1.24%, followed by Nifty Private Bank (1.11%), Nifty Financial Services (1.10%), Nifty PSU Bank (1.05%), Nifty Realty (0.91%), Nifty Oil & Gas (0.68%) and Nifty Auto (0.65%). On the other hand, Nifty IT slipped 0.24%, Nifty Media fell 0.30% and Nifty Metal edged down 0.18%.
Among Sensex constituents, Bajaj Finance emerged as the top gainer, rising 2.46%. Axis Bank climbed 1.92%, InterGlobe Aviation gained 1.76%, UltraTech Cement rose 1.44%, Reliance Industries added 1.24% and ICICI Bank advanced 1.21%.
On the losing side, TCS declined 0.83%, Infosys slipped 0.53%, Power Grid fell 0.37%, Hindustan Unilever lost 0.29% and Tata Steel edged down 0.24%.
GEOPOLITICAL RISKS REMAIN A KEY OVERHANG
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said uncertainty surrounding West Asia continues to cloud the market outlook despite encouraging domestic fundamentals.
"With the uncertainties in West Asia continuing and Brent crude trading around $86, there are no positives that can lift the market higher in the near-term. President Trump’s notoriously irresponsible comments also continue, this time about a charge on countries for U.S. assistance to ships transiting through the Strait of Hormuz. Soon Trump made a U turn on this, replacing the proposed charge with 'investments in the U.S.' With this kind of leadership, total uncertainty has become the new normal, rendering investment decisions extremely challenging.
"In India, there are other challenges like rising CPI inflation (4.38% in June) and deficiency in monsoon which has reached 18%. On the positive side, credit growth in the economy continues to be strong and demand in sectors like automobiles continues to be robust. The best strategy during totally uncertain and complex times like these is to remain invested and continuing to invest in stocks in growth sectors which are fairly valued. Q1 results of leading banks, NBFCs and auto stocks will be good. Digital platform companies are likely to report good growth numbers."
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
