Benchmark stock market indices saw a positive start on Wednesday, driven by a rise in metal sector stocks and following the upward trend in global markets, particularly in the US. The S&P BSE Sensex surged by 274.90 points to reach 84,861.91, while the NSE Nifty50 climbed 83.25 points to 25,968.05 by 9:28 am.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that market movements can sometimes lack clear reasoning. Short-term fluctuations may not align with underlying fundamentals, often influenced by technical factors and market activities related to futures expiry. The recent drop of 74 points in Nifty, despite significant institutional buying of Rs 4697 crores, exemplifies the impact of expiry-related volatility.
Key gainers in early trading included Trent, which rose by 1.53%, and Bajaj Finance, up by 0.88%. Power Grid, Tech Mahindra, and Tata Steel also contributed to the positive market sentiment, with gains ranging from 0.78% to 0.86%.
Conversely, certain stocks experienced declines, with Bharti Airtel leading as the top loser, falling by 2.24%. Hindustan Unilever, BEL, M&M, and Eternal also saw decreases ranging from 0.09% to 0.31%.
Vijaykumar advised investors to remain cautious during volatile market phases. He suggested refraining from excessive trading and instead focusing on gradually accumulating high-quality growth stocks at discounted prices due to increased market volatility. Such stocks are likely to recover swiftly, emphasizing the importance of investors’ psychological resilience in such market conditions.