Stock market indices showed a mixed trend during the opening of the trading session on Wednesday. The S&P BSE Sensex and NSE Nifty50 initially experienced a dip, mirroring the negative sentiment in Asian markets, as investors awaited the US Federal Reserve’s important policy decision and commentary.
Despite the early dip, the 30-share Sensex made a recovery, gaining 227.35 points to reach 71,367.25 at 10:13 am. Similarly, the Nifty50 saw an increase of 78.25 points, trading at 21,600.35. Broad market indices also displayed positive momentum, even as investors exercised caution ahead of the upcoming Interim Budget 2024-25 presentation.
Nifty Bank and Nifty Financial Services indices were among the top performers, recording over a 1% increase and providing substantial support to the domestic market benchmarks. All other sectoral indices were in positive territory.
The top 5 gainers on the Nifty50 included Tata Motors, Dr Reddy’s, M&M, HDFC Bank, and Cipla. Conversely, the top losers were Larsen & Toubro, Titan, SBI Life, Bharti Airtel, and Apollo Hospitals.
Tata Motors observed a notable uptick of over 3% in early trade, building on the momentum from hitting an all-time high in the previous session. This surge preceded the announcement of the automaker’s Q3 results.
On the flip side, Larsen & Toubro shares experienced a sharp decline of over 6% after falling short of Q3 profit estimates.
Before the market opening, Mandar Bhojane, a research analyst at Choice Broking, predicted a potentially negative start for benchmark indices. Analyzing the daily chart, Bhojane highlighted the formation of a dark cloud cover, signaling a bearish outlook in the short term. He identified the support level at 21,500, emphasizing that a significant drop below this level could trigger a corrective phase in the market. On the positive side, sustained trading above 21,500 might pave the way for an upward movement, according to Bhojane’s analysis.