Stock Market Update: Sensex Gains 250 pts at Open, Nifty50 Above 16,100; Key Points

Key benchmark indices were trading in the green on Wednesday morning despite mixed global cues. At 09:15 IST, the Sensex was up 219.76 points or 0.41 per cent at 54106.37, and the Nifty was up 61.10 points or 0.38 per cent at 16119.40.

Top Gainers & Losers

Asian Paints, L&T, HUL, SBI, Power Grid, NTPC, Bajaj Finance, TCS and Infosys led gains on the Sensex, rising up to 1.7 per cent. BPCL, Grasim, Britannia, and Tata Motors were the additional Nifty winners.

On the flip side, HCL Tech was the leading index loser, down 2 per cent after reporting a sequential decline in net profit in Q1FY23. ONGC, Tech M, Reliance, Dr Reddy’s, Titan, and HDFC Bank were the other large-cap losers.

The broader markets also opened in green. The BSE MidCap and SmallCap indices were up to 0.6 per cent higher.

Nifty PSB index rallied over 1 per cent leading sectoral gains. Nifty FMCG, Realty were the other notable winners.

Among other stocks, CARE Ratings soared 8 per cent after the company said it will consider a plan for share buyback on July 20.

Dr. V K Vijayakumar, chief investment strategist at Geojit Financial Services, said: “The major positive development from India’s economic and market perspective is the crash in Brent crude to below $ 100 for the first time since March 22. The bulls are likely to latch on to this good news. But FIIs again turning sellers will be a dampener.”

“The market direction will be set by the US market move today which, in turn, will be determined by the CPI inflation data for June to be released today. June CPI inflation is expected to touch 8.8per cent YoY. If the actual numbers and indications are below expectations, markets will stage a rebound. Conversely, if the actuals are higher than expectations, there can be a further sell-off impacting markets globally. So, watch out for the US inflation numbers. An important short- term trend playing out in the market is the weakness in IT and strength in banking. IT is weak on margin pressure in the industry and fears of a possible US recession fallout. Banking is strong due to the strong fundamentals of the banking segment and the impressive credit growth underway in the economy,” he added.

Global Cues

Major Asian stocks started Wednesday morning slightly higher following two days of big losses, though gains were limited by ongoing worries about a possible recession and China’s latest Covid-19 outbreak. MSCI’s index of Asia-Pacific shares outside Japan was up by 0.66 per cent.

Tokyo stocks opened higher on Wednesday ahead of a key US inflation report and with worries growing over rising Covid-19 cases in Japan and abroad. The benchmark Nikkei 225 index was up 0.53 per cent, or 138.69 points, at 26,475.35 in early trade, while the broader Topix index edged up 0.43 per cent, or 8.09 points, to 1,891.39.

Wall Street ended in negative territory on Tuesday as growing signs of recession kept buyers out of the equities market ahead of inflation data. The Dow Jones Industrial Average fell 192.51 points, or 0.62 per cent, to 30,981.33, the S&P 500 lost 35.63 points, or 0.92 per cent, to 3,818.8 and the Nasdaq Composite dropped 107.87 points, or 0.95 per cent, to 11,264.73.

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