Indian stock market opens higher, Nifty above 23,200
"Indian markets rally as Sensex climbs 401 points and Nifty gains 97 points, driven by strong Asian cues and easing inflation. Key updates on top gainers, sector performance, and global trends."
Mumbai: Indian benchmark indices Sensex and Nifty opened on a bullish note on Wednesday, buoyed by positive trends in Asian markets and strong performance by heavyweight stocks like Reliance Industries.
A decline in retail inflation further contributed to the market’s optimistic trajectory.
Table of Contents
Early Trading Highlights
The 30-share BSE Sensex surged 401.53 points to reach 76,901.16 in early trade, while the NSE Nifty gained 97.5 points, climbing to 23,273.55. The rally was driven by robust buying in bellwether stocks and favorable macroeconomic indicators.
Top Performers
Key gainers from the 30-share blue-chip pack included:
- Maruti Suzuki
- NTPC
- Zomato
- IndusInd Bank
- Power Grid
- Kotak Mahindra Bank
- Reliance Industries
- Adani Ports
- Tech Mahindra
- Larsen & Toubro
Underperformers
Stocks that lagged in early trading included:
- Bajaj Finserv
- Bajaj Finance
- Axis Bank
- Mahindra & Mahindra
Asian Markets and Global Influence
Positive sentiment from Asian markets provided a significant boost to Indian indices:
- Seoul, Tokyo, and Hong Kong markets traded in the green.
- Shanghai saw a slight decline.
In the United States, markets closed mostly higher on Tuesday, further reinforcing global investor confidence.
Easing Retail Inflation: A Key Driver
Retail inflation eased to a four-month low of 5.22% in December, thanks to declining food prices, especially vegetables. The latest government data, released on Monday, provides the Reserve Bank of India (RBI) with the flexibility to consider reducing key interest rates in its upcoming monetary policy reviews.
This reduction in inflation is a critical factor supporting market optimism, as lower interest rates can fuel economic growth and enhance corporate earnings.
Also Read | Sensex Soars Over 1,200 Points, Auto and IT Stocks Lead the Rally
Sectoral and Stock-Specific Insights
Reliance Industries: A Strong Contributor
Reliance Industries emerged as a major contributor to the rally, reflecting strong investor confidence in its diversified business model and growth prospects.
Tech Sector
Tech Mahindra and other IT stocks displayed robust performance, benefiting from global tailwinds in the technology sector.
Financial Stocks
While Kotak Mahindra Bank was among the top gainers, financial heavyweights like Bajaj Finserv and Bajaj Finance faced minor setbacks, reflecting a mixed trend within the sector.
Oil Prices and FIIs Activity
Global oil benchmark Brent crude saw a slight uptick, climbing 0.14% to USD 80.03 per barrel, signaling stability in energy markets.
However, Foreign Institutional Investors (FIIs) sold equities worth Rs 8,132.26 crore on Tuesday, as per exchange data. Despite this outflow, domestic investor sentiment remained strong, bolstering market indices.
Previous Day’s Performance
On Tuesday, the BSE benchmark Sensex gained 169.62 points (0.22%) to settle at 76,499.63, while the Nifty rose 90.10 points (0.39%) to close at 23,176.05. This momentum carried over into Wednesday’s session, underscoring sustained positive sentiment.
Looking Ahead
The combination of easing inflation, strong global cues, and robust performance by key stocks is expected to sustain bullish sentiment in the near term. Investors will closely monitor upcoming economic data, corporate earnings, and global market trends to gauge further movements.
