Indian stock market: Indian benchmark indices, Sensex and Nifty50, moved higher on Wednesday, buoyed by strong performances in financial and IT stocks, following lower-than-expected inflation data from both the U.S. and India for April.
Around 10:20 am, the BSE Sensex surged 518 points (0.64%) to 81,666, while the Nifty50 rose 184 points (0.75%) to 24,762.
“The benchmark Nifty saw a pullback in yesterday’s trading session after a strong rally in the session before that. Opening with a gap down of 60 points, it witnessed selling pressure throughout the day, closing with a loss of 346 points. Top gainers included Bharat Electronics Ltd., Hero MotoCorp Ltd., and Jio Financial Services Ltd., while top losers were Infosys Ltd., Power Grid Corporation of India Ltd., and Eternal Ltd. On the technical front, Nifty experienced a steep pullback following a strong rally. It has formed a bearish candlestick pattern on the daily chart, indicating the potential for continued bearish momentum in the near term,” said brokerage firm Way2Wealth in a report.
Is it time to book profits amid India-Pak tensions?
Nifty witnessed profit booking in yesterday’s session, falling more than 400 points from intraday highs and closing near the session’s low.
“As anticipated, Nifty Midcap and Small Cap indices outperformed the Benchmark Indices. We expect this trend to continue as we approach the end of the earnings season, which has been primarily in line with expectations,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.
According to Sameet Chavan, Head Research, Technical and Derivative – Angel One, the market’s tone is bullish despite volatility amid ongoing India-Pakistan tensions.
“This undercurrent kept the market’s tone bullish. While choppiness may persist, we maintain a positive bias on the benchmark and stick to our recent view of adopting a ‘buy on dips’ strategy,” Chavan said.
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