Indian benchmark indices traded largely flat in early trade on Wednesday as gains in select heavyweights were offset by weakness in banking stocks, while easing crude oil prices supported market sentiment.
At around 9:18 a.m., the BSE Sensex was at 78,279.66, up 73.68 points or 0.09%. The Nifty 50 stood at 24,256.90, down 4.70 points or 0.02% after touching an intraday high of 24,292.35.
Shares of Reliance Industries rose about 1.45% to Rs 1,429.20, emerging as one of the key supports for the benchmark indices.
Among other gainers on the Nifty, Sun Pharmaceutical Industries climbed around 1.49%, while Wipro gained about 1.45%. Airline operator InterGlobe Aviation also advanced more than 1% in early trade.
However, banking stocks weighed on the indices. Shares of HDFC Bank fell around 0.7%, while ICICI Bank declined about 0.6%. Kotak Mahindra Bank slipped over 1%, adding pressure on the benchmarks.
Other stocks trading lower included Bharti Airtel, Mahindra & Mahindra and Shriram Finance.
Market participants are closely tracking foreign investor flows and sectoral trends.
According to VK Vijayakumar, a key trend in the market is the continued divergence between foreign and domestic institutional investors.
“There are some important market trends that investors should analyse and try to understand now. One, the FII vs DII game is back to the last one-year pattern of sustained selling by FIIs being more than matched by sustained buying by DIIs. Given the continuing indifference of FIIs towards India and the sustaining inflows into Indian equity mutual funds, this game is likely to continue in the near-term,” he said.
He added that despite broader market weakness, some sectors are showing resilience.
“Segments like pharmaceuticals and domestic consumption themes such as telecom, automobiles and defence are exhibiting resilience,” Vijayakumar said.
He also noted that sustained foreign investor selling has made large banking stocks more attractive for long-term investors.
“Sustained FII selling has made large banking stocks, which constitute the largest segment of FIIs’ assets under management, attractive. These stocks have the potential to reward investors who can buy and hold them for at least two years. Here patience is the key,” he said.
Vijayakumar added that the decline in Brent crude prices to below $88 per barrel could improve risk sentiment in the market.
