Indian Stock Market Opens Higher as Nifty Crosses 23,000 Amid Union Budget Optimism

Mumbai: The Indian stock market opened on a strong note for the second consecutive day on Wednesday, with investor sentiment buoyed by optimism surrounding the upcoming Union Budget 2025-26.

Both the Sensex and Nifty 50 gained early momentum, reflecting a positive outlook in the market.

As of 9:33 a.m., the BSE Sensex was up 195 points or 0.29%, trading at 76,122, while the NSE Nifty 50 gained 65 points or 0.29%, reaching 23,025.

Market Sentiment: Optimism Ahead of Union Budget 2025-26

Investors are closely monitoring budget-related announcements, expecting pro-growth policies and reforms that could drive further gains.

According to analysts, the US Federal Reserve’s policy decision on Wednesday (US time) is unlikely to have a significant impact on the market, as no major changes in interest rates are expected.

On Tuesday, the benchmark indices recorded their best trading session since January 2, bolstered by strong domestic institutional investments and stable global cues.

Technical Analysis and Market Trends

Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that the market had a promising start and rebounded sharply.

“However, profit booking was witnessed at higher levels. On the daily chart, a long-legged doji candlestick structure has formed, indicating indecision between bulls and bears. We believe that 23,150 on the Nifty and 76,300 on the Sensex would act as the trend decider levels for the bulls.”

Experts predict that if the market trades above 23,150/76,600, it could retest the levels of 23,250/76,900 to 23,350/77,200.

Top Gainers and Sectoral Performance

In early trade, major contributors to Nifty 50’s upward movement included:

• Infosys
• ICICI Bank
• HDFC Bank
• Bajaj Auto
• Tata Consultancy Services (TCS)

NSE Sectoral Performance:

• Out of 12 sectoral indices, 10 advanced, while two declined.
• NSE Media was the top-performing sector, while NSE FMCG declined the most.

BSE Sectoral Performance:

• Out of 21 sectors, 19 advanced, and two declined.
• BSE IT led the gains, while BSE FMCG saw the highest decline.

Broader Markets Outperform Benchmarks

Broader market indices outperformed benchmark indices, showcasing strong investor confidence:

• BSE Midcap Index: +0.89%
• BSE Smallcap Index: +1.04%

Bank Nifty: Key Support and Resistance Levels

According to technical analysts, Bank Nifty is expected to find support at 48,500, followed by 48,200 and 47,900.

If the index advances further, it will face key resistance levels at 49,000, followed by 49,300 and 49,600.

Foreign & Domestic Institutional Investment Trends

Foreign and domestic institutional activities played a crucial role in driving market movements:

Also Read | Indian Stock Market Rebounds, Ends Two-Day Decline with Gains Across Key Indices

• Foreign Institutional Investors (FIIs): Sold equities worth ₹4,920.69 crore on January 28.
• Domestic Institutional Investors (DIIs): Bought equities worth ₹6,814.33 crore on the same day.

Key Factors Driving Market Sentiment

Several factors are influencing the positive momentum in the stock market:

1. Union Budget 2025-26 Expectations: Investors are hopeful about economic reforms, infrastructure spending, and fiscal stimulus measures.
2. Global Market Stability: Despite the upcoming US Federal Reserve policy decision, global equity markets remain stable, supporting Indian markets.
3. Strong Institutional Buying: Domestic institutional investors (DIIs) are actively purchasing stocks, counterbalancing FIIs’ selling pressure.
4. Technical Support Levels Holding: The Nifty and Sensex have sustained key support levels, encouraging bullish sentiment.

Outlook for the Coming Sessions

Market experts believe that if Nifty sustains above 23,150, the index could test higher resistance levels of 23,350 to 23,500 in the coming days.

Investors should closely watch budget-related announcements, as policy changes could significantly impact market trends across various sectors.