Mumbai (Maharashtra) [India], February 21 : The Indian equity markets commenced trading on Wednesday with a modestly positive note, displaying a flat to upward trend despite underlying caution due to the absence of clear market drivers.
As the nation gears up for upcoming general elections, market sentiment is anticipated to remain subdued with limited volatility. Foreign portfolio investors continued their selling spree, offloading shares on any upward movement.
At the opening bell, the benchmark Sensex surged by 85.08 points to stand at 73,142.51, indicating a bullish start. Similarly, the Nifty index gained 24.00 points to open at 22,222.60.
Among the Nifty constituents, 32 companies registered advances, while 18 recorded declines.
Leading the pack of gainers were prominent names such as Hindalco, Tata Steel, Eicher Motors, JSW Steel, and M&M, showcasing robust performance in the initial trading hours.
Conversely, notable losers included Power Grid, Infosys, Bajaj Auto, Axis Bank, and Maruti, which faced downward pressure.
Varun Aggarwal, founder and managing director, Profit Idea, said, "Despite negative global cues stemming from a downturn in US stocks and Asian equities, the Nifty index managed to sustain positive momentum, edging up by over a quarter percent and nearing the crucial 22,200 level. Heavyweight stocks like HDFC Bank, NTPC, Axis Bank, Kotak Bank, and Hindustan Unilever contributed significantly to the index's gains, attracting renewed buying interest."
He added, "Banking stocks, particularly those in the private sector, emerged as the driving force behind the market's upward trajectory. The Bank Nifty soared by over 1.2 per cent, primarily fueled by the robust performance of HDFC Bank. However, profit booking in mid-cap and small-cap stocks led to declines of up to half a percent in the Nifty mid-cap and small-cap indices. The advance-decline ratio among Nifty 500 stocks stood at 1:1.5".
From a technical perspective, the Nifty index displayed a bullish trend, characterized by a candle with a longer lower shadow, indicating strong support-based buying.
The index closed near its day's high with gains of approximately 70 points on Tuesday.
Derivative data also pointed towards positive momentum, with Nifty futures closing higher and India VIX experiencing a slight uptick.
Aggarwal said, "Option data suggested a broader trading range between 21,900 to 22,500 zones, with an immediate range of 22,000 to 22,350 zones."
As the trading day progresses, market participants are closely monitoring global developments and domestic factors for further cues, with the upcoming elections likely to influence investor sentiment and market dynamics in the days ahead.
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