Taking cues from Asian peers, the Indian stock market opened in the green on Wednesday. The broader Nifty50 opened near 16,200, while the Sensex added over 200 points to start around 54,250 as benchmarks gained nearly half per cent each in the opening trade.
Nifty midcap and smallcap gained around 0.4% each as India VIX slid below 25-mark.
Sectorally, all indices, except Nifty IT opened in the green as banking and financial stocks outperformed
“The dominant trend impacting the market is the relentless selling by FPIs, which as on 25th May, has touched Rs 168421 cr for CY 2022. As long as this massive selling continues, the market will remain weak. Another major trend in the market is the shift from growth to value. Value buying happening in segments like banking, in spite of FPI selling, is imparting resilience to such segments, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The government’s initiatives to rein in inflation indicate margin compression for segments like sugar, edible oil and metals, he said.
“But firms with pricing power can weather this storm. The decline in the dollar index and the US 10-year bond yield is a near-term positive for emerging markets but that will be insufficient to improve market sentiments which are weak,” Geojit Financial Services expert added.
In the pre-open, the Sensex gained nearly 200 points as 22 stocks advanced, seven declined and one remained neutral on the 30-share index.
Earlier, all major Asian indices traded in the green in the morning. Hang Seng Index at the Hong Kong Exchange was up 0.7%, Chinese Shanghai Composite gained 0.5% and Japanese Nikkei was trading flat in the early trade.
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Besides, SGX Nifty Futures on the Singaporean exchange rose by more than 60 points, hinting at positive opening for the Indian market on Wednesday.
On Tuesday, the US market continued to see pressure as major Wall Street indices ended in the red. Nasdaq closed lower by 270 points, S&P dropped 32 points and Russell 2000 lost 28 points. However, Dow Jones closed higher by 48 points.
