Benchmark stock market indices opened slightly higher on Wednesday as investors capitalized on the recent market decline. Leading the early morning gains were metal and auto stocks.
The S&P BSE Sensex rose by 127.93 points to reach 84,794.21, while the NSE Nifty50 climbed 60.15 points to 25,899.80 by 9:30 am.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, commented on the market dynamics, citing the justifiability of heavy selling in the broader market due to elevated valuations supported mainly by liquidity. He expressed concerns over the delayed finalization of the US-India trade deal and remarks made by President Trump regarding trade actions against India.
In early trading, top gainers included Bajaj Finserv with a 1.29% increase, followed by Adani Ports and Special Economic Zone rising by 1.21%. Tata Steel saw a 1.03% advance, Kotak Mahindra Bank added 1.00%, and Mahindra and Mahindra gained 0.63%, leading the Sensex gains.
Conversely, select stocks faced selling pressure, with Titan Company being the biggest loser, dropping by 0.51%. Other decliners included Eternal down by 0.43%, Sun Pharmaceutical Industries falling 0.37%, Infosys declining 0.28%, and Tata Consultancy Services down by 0.24%.
Vijayakumar highlighted the positive shift in India’s fundamentals, emphasizing the potential for higher growth and corporate earnings in the upcoming quarters. He mentioned the impact of fiscal and monetary stimulus measures and the expected rise in inflation rates, which would boost nominal GDP growth and subsequently influence corporate earnings growth positively. He advised investors to remain patient and have faith in the unfolding positive market trends driven by these fundamental factors.