Indian equities opened on a firm note on Wednesday, buoyed by strength in global markets and easing trade tensions. At 9:25 a.m., the benchmark index Nifty 50 climbed 0.15 percent, or 39 points, to 25,975.65, while the Sensex advanced 0.2 percent, or 194 points, to 84,821.52.
Among the sectoral indices, Nifty Metal led the gains, rising more than 1 percent, followed by Nifty Pharma and Nifty Oil & Gas, which added 0.45 percent and 0.68 percent respectively. On the downside, Nifty Auto slipped 0.75 percent.
What analysts say?
Technical analysts said Nifty is likely to find support around 25,900, with additional cushions at 25,850 and 25,800. On the upside, immediate resistance is seen at 26,000, followed by 26,050 and 26,100. For Bank Nifty, support lies near 58,100 and 58,000, while resistance levels are pegged at 58,300 and 58,400.
Why are markets in green today?
Investor sentiment received a boost from softer crude oil prices and easing global trade tensions after US President Donald Trump signaled a potential rollback of fentanyl-linked tariffs on China. Oil prices slipped about 2 percent as markets weighed US sanctions on Russian suppliers and a possible OPEC+ decision to raise output.
On Monday, markets witnessed sharp volatility, but strong foreign institutional investor (FII) inflows worth Rs 10,340 crore lent confidence to domestic equities. With the November futures and options series kicking off, optimism remains high, and Nifty is eyeing its record peak of 26,277.35. Analysts noted that support for Nifty stands at 25,701 on a closing basis, aided by expectations of a US Federal Reserve rate cut and improving US-China trade sentiment. The week’s earnings calendar remains busy, with key results from L&T, Coal India, ITC, Cipla, and Dabur India due midweek.
Across Asia, shares gained tracking Wall Street's rally, underpinned by renewed enthusiasm for artificial intelligence stocks. Investors are now focused on the US Federal Reserve's policy decision and quarterly results from major technology companies. The prospect of lower interest rates lifted bonds, while the dollar extended losses amid bets that Wednesday’s anticipated 25-basis-point rate cut may not be the last this year.
Overnight, US stocks surged to record highs, driven by AI-led momentum. The Dow Jones Industrial Average rose 160 points after briefly testing the 48,000 mark, the S&P 500 added 0.2 percent, crossing 6,900 intraday, while the Nasdaq jumped 0.8 percent, powered by Nvidia.
All eyes now turn to the Federal Reserve's rate decision and commentary from Chair Jerome Powell for clues on future monetary policy. Attention will also center on quarterly results from Microsoft, Alphabet, and Meta — three of the 'Magnificent Seven' tech leaders — which are expected to report 14 percent profit growth for the quarter, outpacing the broader S&P 500’s 8 percent rise, though marking their slowest expansion since early 2023.
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