StockMarket – IT Shares Power Sensex and Nifty Higher
StockMarket – Indian equity benchmarks opened on a firm footing Wednesday morning, supported by strong buying in information technology stocks after a rebound in US technology shares overnight lifted global sentiment.
At 9:30 am, the BSE Sensex climbed 559 points, or 0.69 percent, to 82,785. The NSE Nifty50 advanced 157 points, or 0.62 percent, to 25,582. The early gains reflected optimism across sectors, even as investors remained alert to global developments.
Broader Indices Track Benchmark Gains
The rally was not limited to frontline stocks. Broader markets also moved higher, though at a slightly measured pace. The Nifty Midcap 100 index rose 0.27 percent, while the Nifty Smallcap 100 added 0.46 percent. The alignment of mid- and small-cap stocks with the benchmarks indicated steady participation beyond heavyweight counters.
Market breadth remained positive in early trade, with advances outnumbering declines across several sectors.
IT and Metal Stocks Lead the Charge
Technology shares emerged as the standout performers. The Nifty IT index surged 1.91 percent, tracking gains in US tech companies after a recovery on Wall Street. Investors appeared encouraged by renewed buying interest in global technology counters, which often influence domestic IT majors given their significant overseas exposure.
Metal stocks also witnessed notable buying, with the Nifty Metal index climbing 1.43 percent. Strength in commodity-linked counters added momentum to the broader rally.
All major sectoral indices traded in positive territory during the morning session, reflecting widespread buying interest.
Caution Prevails Amid Global Uncertainty
Despite the upbeat start, analysts pointed out that investor sentiment may remain guarded. Ongoing geopolitical tensions between the United States and Iran, along with elevated crude oil prices, continue to pose risks to global markets.
In addition, concerns surrounding artificial intelligence-driven disruptions in the global technology space have tempered risk appetite in recent sessions. While the current rebound has provided relief, market participants are closely monitoring how these structural shifts may affect earnings outlooks for major tech companies.
Previous Session’s Sharp Decline
The recovery follows a weak close in the previous trading session. On Tuesday, which coincided with the monthly derivatives expiry, the Nifty fell sharply by 259 points to settle at 25,459. The selloff wiped out nearly Rs 2.85 lakh crore in investor wealth among companies listed on the BSE.
The decline had raised concerns about near-term volatility, particularly as traders adjusted positions ahead of expiry.
Key Technical Levels to Watch
According to Devarsh Vakil, Head of Prime Research at HDFC Securities, the 200-day exponential moving average, placed near 25,240, is expected to act as a crucial support level for the Nifty in the near term. On the upside, the 25,640 to 25,770 zone may serve as an immediate resistance area, potentially limiting further gains.
Market observers also highlighted 25,300 as an immediate support level for the Nifty, while resistance is seen in the 25,600 to 25,700 range.
For the Bank Nifty index, support is estimated between 60,900 and 60,600, whereas resistance is placed around the 61,500 to 61,700 band.
Asian and US Markets Provide Support
Global cues were largely positive. In Asia, China’s Shanghai Composite rose 0.87 percent and the Shenzhen index gained 0.94 percent. Japan’s Nikkei advanced 1.44 percent, while Hong Kong’s Hang Seng Index edged up 0.46 percent. South Korea’s Kospi outperformed with a 2.33 percent jump.
Overnight in the United States, markets ended higher. The Nasdaq Composite rose 1.05 percent, the S&P 500 gained 0.77 percent, and the Dow Jones Industrial Average added 0.76 percent, setting a constructive tone for Asian trading hours.
Institutional Activity
On February 24, foreign institutional investors were net sellers of equities worth Rs 103 crore. In contrast, domestic institutional investors provided support, purchasing shares worth Rs 3,161 crore on a net basis.
The divergence in institutional flows underscores the balancing role played by domestic investors in stabilizing market movements during periods of global uncertainty.