Indian equity benchmark indices BSE Sensex and Nifty50 opened the trading session in green on Wednesday, continuing the positive momentum observed on Tuesday. The Sensex surged 200 points to briefly move above 74,000, while the Nifty50 breached the 22,400 mark. At 9:28 AM, the Sensex was trading at 73,928.51, up 190 points (0.26%), and the Nifty50 stood at 22,415.75, gaining 48 points (0.21%).
The positive trend in the Indian stock market is attributed to factors such as strong corporate earnings and positive global cues. Investors are focusing on earnings reports from key companies this week, and the market is expected to maintain its upward trajectory with stock-specific action, according to Siddhartha Khemka, Head of Retail Research at Motilal Oswal.
The near-term uptrend of the Nifty remains intact, and any consolidation or minor dip could present a buying opportunity, as per Nagaraj Shetti of HDFC Securities. In the United States, stocks closed higher on Tuesday following positive earnings from top-tier companies.
The Dow rose 0.69%, the S&P gained 1.20%, and the Nasdaq advanced 1.59%. Asian shares also advanced, with the Topix in Japan rising 1%, the S&P/ASX 200 in Australia gaining 0.4%, and the Hang Seng futures in Hong Kong increasing by 0.3%.
Oil prices rose in early trade on Wednesday, adding to gains from the previous session, after industry data showed a surprise drop in U.S. crude stocks last week, indicating positive demand. The dollar, on the other hand, struggled following significant declines against the euro and sterling, impacted by surprisingly robust European activity data and cooling U.S. business growth.
Foreign portfolio investors (FPIs) were net sellers for the second straight day, offloading shares worth Rs 3,044 crore on Tuesday, while domestic institutional investors (DIIs) bought shares worth Rs 2,918 crore. The rupee rose 5 paise to close at 83.31 against the US dollar on Tuesday, supported by positive domestic markets and a soft American currency.
Several companies, including HUL, LTIMindtree, Indian Hotels, and Axis Bank, are set to announce their fourth-quarter earnings on Wednesday.
