Is the Indian Stock Market Opening Higher Amidst Mixed Global Cues?
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Synopsis
The Indian stock market shows an optimistic start on Wednesday as it responds positively to mixed global cues. With notable gains in the pharmaceutical and automotive sectors, investors are keenly observing market trends. Can this momentum be sustained despite the backdrop of rising COVID-19 concerns?
Key Takeaways
- The Indian stock market opened positively on Wednesday.
- Strong buying was observed in the pharmaceutical, auto, and financial sectors.
- Sensex and Nifty are showing significant early gains.
- The market is influenced by mixed global cues and rising COVID-19 cases.
- FIIs have recorded substantial selling, impacting market sentiment.
Mumbai, May 21 (NationPress) The Indian benchmark indices commenced the day with a positive trajectory on Wednesday, buoyed by mixed global signals. Early trading witnessed a surge in buying activity in the pharmaceutical, automotive, PSU banking, and financial services sectors.
As of approximately 9:35 AM, the Sensex was up by 296.53 points or 0.37 percent, reaching 81,482.97, while the Nifty index gained 88.90 points or 0.36 percent, standing at 24,772.80.
The Nifty Bank index climbed 98.55 points or 0.18 percent, now at 54,975.90. Conversely, the Nifty Midcap 100 index fell by 154.10 points or 0.27 percent, trading at 56,028.55. The Nifty Smallcap 100 index also decreased, down by 63.65 points or 0.36 percent, currently at 17,419.35.
Analysts noted that Indian equity benchmarks experienced a significant downturn on Tuesday, influenced by reports of a rise in COVID-19 cases in Southeast Asian nations, particularly Singapore and Hong Kong.
“From a technical standpoint, Nifty ended below its 5-day EMA for the first time since May 8, 2025, indicating a potential shift towards profit-taking. Support levels are identified at 24,494 and 24,378, while resistance is anticipated between 24,800 and 24,900,” stated Devarsh Vakil, Head of Prime Research at HDFC Securities.
In the absence of robust global cues, Indian markets are expected to rebound from yesterday's performance, he added.
In the Sensex bracket, top gainers included Sun Pharma, HDFC Bank, Tech Mahindra, TCS, Nestle India, Maruti Suzuki, ICICI Bank, UltraTech Cement, and Hindustan Unilever. Conversely, Eternal, Kotak Mahindra Bank, IndusInd Bank, and NTPC emerged as the primary losers.
Across Asian markets, countries such as China, Hong Kong, Bangkok, Seoul, and Jakarta were exhibiting gains, while only Japan was in the negative.
In the previous trading session, the Dow Jones in the US concluded at 42,677.24, down by 114.83 points or 0.27 percent. The S&P 500 ended with a drop of 23.14 points, or 0.39 percent, at 5,940.46, and the Nasdaq closed at 19,142.71, down 72.75 points or 0.38 percent.
The surge in uncertainty and risk is affecting the market rather unexpectedly. The foreign institutional investor (FII) sell figure of Rs 10,016 crore from yesterday marks a significant reversal of their substantial purchasing in May, and if this trend continues, it could have repercussions on the market, experts note.
“The credit rating downgrade of US sovereign debt, the resultant spike in US bond yields, rising Japanese government bond yields, increasing COVID cases in certain parts of India, and reports of a potential Israeli attack on Iran are circulating. The combination of these factors may be responsible for this sudden reversal in FII activity,” they remarked.
As per provisional data from the NSE, foreign institutional investors (FIIs) divested Indian equities worth Rs 10,016.10 crore on May 20, while domestic institutional investors (DIIs) were net purchasers amounting to Rs 6,738.39 crore.
Point of View
I believe that the Indian stock market's resilience amidst a backdrop of mixed global cues showcases its strength. While the rise in COVID-19 cases poses challenges, the sectors showing gains indicate a potential for recovery. It is essential for investors to remain informed and agile in this ever-changing landscape.
NationPress
01/06/2025
Frequently Asked Questions
What sectors are performing well in the Indian stock market?
The Indian stock market is witnessing strong performances in the pharmaceutical, automotive, PSU banking, and financial services sectors.
What were the latest figures for Sensex and Nifty?
The Sensex was trading up by 296.53 points at 81,482.97, while the Nifty increased by 88.90 points at 24,772.80.
How are global markets influencing Indian stocks?
Mixed global cues are impacting investor sentiment, leading to cautious optimism in the Indian markets.
What does the recent selling by FIIs indicate?
The recent FII sell-off of Rs 10,016 crore signals a potential shift in market dynamics, raising concerns among investors.
What is the outlook for the Indian stock market?
Analysts suggest that the market may stabilize, but rising COVID-19 cases and global uncertainties should be closely monitored.
