Benchmark Indices Gain, Metals and Auto Stocks Surge
Indian benchmark stock indices, the S&P BSE Sensex and NSE Nifty50, commenced Wednesday’s trading session with gains. The positive momentum was fueled by a surge in metals and auto stocks. The S&P BSE Sensex climbed 0.24% to reach 73,884, while the NSE Nifty50 edged up 0.2% to 22,405 at 9:25 a.m. IST.
The metals index experienced a significant gain of 0.5%, while auto stocks witnessed a rise of 0.4%. The positive movement in these sectors was supported by encouraging quarterly results from several Nifty50 companies. Tata Consumer Products, however, faced a setback, declining by 4.2% in the Nifty50 index as its fourth-quarter revenue fell short of analysts’ expectations.
The positive trend extended to Asian shares, following the upbeat performance of US markets on Wednesday. Strong earnings from selected companies boosted investor confidence, alleviating concerns stemming from the Middle East. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., highlighted the impact of the overnight surge in US markets and subsequent gains in Asian equities on the positive opening for both Sensex and Nifty.
Tapse also noted the easing of global crude oil prices towards $83 a barrel, raising hopes for de-escalation of tensions in the Middle East. Investors remain optimistic about a potential easing of geopolitical tensions and the continuation of the current political regime in the upcoming general elections, which has contributed to the reversal of the recent market decline.
Among the Nifty50 constituents, Hindustan Unilever, LTIMindtree, and Axis Bank are scheduled to announce their quarterly results today. Bajaj Finance and Maruti Suzuki are expected to release their earnings later this week, further impacting the market’s trajectory.
