Sensex, Nifty Open Higher as Pharma and Banking Stocks Lead Rally
Indian equity benchmarks opened higher on Wednesday, defying fresh concerns over rising COVID-19 cases in parts of Asia. Early trade saw gains led by the pharma, auto, PSU bank, and financial services sectors, as investors reacted to mixed global cues.
Mumbai: Indian equity benchmarks opened higher on Wednesday, defying fresh concerns over rising COVID-19 cases in parts of Asia. Early trade saw gains led by the pharma, auto, PSU bank, and financial services sectors, as investors reacted to mixed global cues.
Sensex and Nifty Start Positive in Early Trade
At 9:35 AM, the BSE Sensex was up by 296.53 points or 0.37%, trading at 81,482.97. The Nifty 50 gained 88.90 points or 0.36%, reaching 24,772.80, showing resilience despite a volatile global landscape.
- Nifty Bank rose by 98.55 points to 54,975.90
- Nifty Midcap 100 fell by 154.10 points to 56,028.55
- Nifty Smallcap 100 declined by 63.65 points, trading at 17,419.35
Market Outlook Amid COVID-19 and Global Risks
Analysts believe the current gains are fragile due to a rise in COVID-19 cases in Southeast Asia, especially in Singapore and Hong Kong. This led to a sharp decline on Tuesday, and the market remains sensitive to any pandemic-related developments.
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“Technically, Nifty closed below its 5-day EMA for the first time since May 8, indicating potential profit-booking. Key support levels are at 24,494 and 24,378. Resistance is likely around 24,800–24,900,” said Devarsh Vakil, Head of Prime Research, HDFC Securities.
Top Gainers and Losers: Sensex Stock Performance
Top Gainers in Sensex Pack:
- Sun Pharma
- HDFC Bank
- Tech Mahindra
- TCS
- Nestle India
- Maruti Suzuki
- ICICI Bank
- UltraTech Cement
- Hindustan Unilever
Top Losers:
- Eternal
- Kotak Mahindra Bank
- IndusInd Bank
- NTPC
Global Market Cues Remain Mixed
Asian Markets:
- Trading in green: China, Hong Kong, Bangkok, Seoul, Jakarta
- Trading in red: Japan
U.S. Markets (Tuesday Close):
- Dow Jones: 42,677.24 (↓114.83 points / -0.27%)
- S&P 500: 5,940.46 (↓23.14 points / -0.39%)
- Nasdaq: 19,142.71 (↓72.75 points / -0.38%)
FIIs Turn Sellers Amid Rising Geopolitical and COVID Risks
Foreign Institutional Investors (FIIs) recorded a net sell-off of ₹10,016.10 crore on May 20, a reversal from their strong buying earlier in May. Meanwhile, Domestic Institutional Investors (DIIs) were net buyers of ₹6,738.39 crore.
“Uncertainty around the U.S. credit rating, spike in U.S. and Japanese bond yields, COVID resurgence, and geopolitical tensions in the Middle East may have triggered the sudden shift in FII behavior,” said market experts.
Market Resilience Tested by Volatility
While Indian stock indices opened higher today, sustained volatility driven by COVID headlines, global bond yields, and foreign capital outflows will likely test investor sentiment in the coming sessions. Investors are advised to remain cautious and watch key support/resistance levels closely.
