Indian equities opened higher on Wednesday, with the Sensex and Nifty extending their rally for a fifth straight session as investors stayed upbeat ahead of quarterly earnings. IT stocks led the advance, fueled by optimism around strong pre-earnings updates, though analysts warned that profit-taking could temper gains later in the session.
The S&P BSE Sensex climbed 165.75 points, or 0.2%, to open at 82,092.50, while the NSE Nifty 50 gained 35.40 points, or 0.14%, to start at 25,143.70. At around 9:26 AM, Sensex traded 230 pts or 0.28% higher at 82,157, whereas Nifty50 climbed 55 pts or 0.22% to 25,165.
On the 30-stock Sensex, shares of Titan, Infosys, TCS, Tech Mahindra and HCL Technologies led the gainers, advancing between 0.7% and 3.5%.
The Nifty IT index climbed 1.3%, outperforming all other sectors.
In contrast, heavyweight financial and banking stocks slipped about 0.3% each after a six-day rally.
Investor sentiment toward lenders had strengthened last week after the Reserve Bank of India allowed banks to fund acquisitions and raised the cap on loans for purchasing shares in IPOs, part of a broader push to spur credit growth.
Alongside upbeat pre-earnings updates from major banks, those measures had helped the Sensex and Nifty gain roughly 2% each over the past four sessions.
Expert views
Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, said the ongoing mild rally in the market is being supported by institutional inflows. “FIIs turning buyers yesterday is a positive development,” he noted, though he cautioned that “it is too early to say that this trend will sustain.”
According to Vijayakumar, markets such as the U.S., Japan, Hong Kong, South Korea and Brazil — the top performers this year — continue to have momentum on their side. “But since the valuation differential between India and other markets has come down, FIIs may view India more favourably,” he said.
On the upcoming earnings season starting October 9, Vijayakumar said it will bring “lots of market action.” He pointed out that as most large-cap results are already priced in, “the management commentary and guidance will be closely watched.”
“There are reports of unprecedented demand and sales of automobiles and consumer durables this festival season. These will be reflected only in the Q3 results. So watch out for the high-frequency data from the real markets,” he said.
Global Markets
Asian shares slipped on Wednesday, tracking overnight losses on Wall Street as investors weighed political turmoil in France and Japan, while a prolonged U.S. government shutdown sent gold prices soaring to a record $4,000 per ounce.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1%, pulling back from a 4½-year high reached on Tuesday. Markets in China and South Korea remained shut for holidays.
Japan’s Nikkei added 0.35%, hovering just below the record high hit in the prior session.
In the U.S., all three major indexes closed lower after a New York Federal Reserve survey showed softening consumer expectations and a rise in inflation projections.
Gold extended its blistering rally, climbing to $4,000.96 per ounce on Wednesday—up more than 50% so far this year, as investors flocked to safe-haven assets amid mounting global uncertainty.
FII/DII Tracker
On the institutional front, Foreign Institutional Investors (FIIs) turned net buyers, purchasing equities worth nearly Rs 1,441 crore on October 7, while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 452.6 crore.
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