Are Nifty and Sensex Trending Higher in Early Trade?
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Synopsis
In early trading on Wednesday, the Indian benchmark indices opened positively, buoyed by US inflation data that suggests a potential rate cut from the Federal Reserve. Metal stocks saw significant gains, and analysts noted mixed performances across various sectors.
Key Takeaways
- Indian indices opened higher due to positive US inflation data.
- BSE Sensex gained 179 points, while Nifty 50 rose by 70 points.
- Broader markets outperformed benchmarks, with SmallCap and MidCap indices seeing gains.
- Metal stocks led the sectoral gains.
- Foreign institutional investors continued to sell, while domestic investors bought.
Mumbai, Aug 13 (NationPress) The Indian benchmark indices began the day on a positive note on Wednesday, buoyed by the recent US inflation figures that have heightened expectations for a potential interest rate cut by the Federal Reserve.
The BSE Sensex rose by 0.22 percent, equating to an increase of 179 points, reaching a total of 80,414 points. Meanwhile, the Nifty 50 climbed to 24,557, marking a gain of 70 points or 0.29 percent.
In a notable performance, broader market indices surpassed the benchmark indices, with the BSE SmallCap index appreciating by 0.65 percent and the BSE MidCap index increasing by 0.64 percent.
Sector-wise, the Nifty Metal index surged by 1.57 percent, while the Nifty Realty index rose by 0.76 percent. Most other indices exhibited a mixed performance, showing slight fluctuations between 0.10 to 0.40 percent.
Within the Nifty pack, Apollo Hospitals led the charge with a remarkable increase of approximately 5 percent, followed by Hindalco and Tata Motors. In contrast, Maruti Suzuki experienced a decline of 0.51 percent, along with modest losses from Tech Mahindra and Axis Bank.
According to analysts, the challenging tariffs imposed by US President Donald Trump and the deteriorating relations between the US and India have adversely affected market sentiment.
“As a result, short positions have accumulated, putting downward pressure on the market. With lackluster earnings growth and high valuations, bears feel emboldened to expand their short positions. A sudden shift in sentiment could spark short-covering and lead to a swift market recovery,” stated Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd.
“The daily chart indicates the formation of a bearish candle with a lengthy upper wick, symbolizing selling pressure at elevated levels. Critical support levels are identified at 24,400 and 24,300, and a fall below these could push the market towards the 24,000 range. Immediate resistance is observed at the 24,600 level,” added Amruta Shinde from Choice Broking.
Asian-Pacific markets were predominantly in the green following the recent US inflation data, which has elevated expectations for a rate cut by the Federal Reserve next month.
In the US, the Dow Jones increased by 1.11 percent, the S&P 500 gained 1.13 percent, and the Nasdaq Composite surged by 1.39 percent.
All major Asian markets were solidly in the green, with Japan’s Nikkei reaching a new high with a surge of 2.46 percent. China's Shanghai Composite rose by 0.44 percent, while the Shenzhen Composite gained 1.34 percent. Hong Kong’s Hang Seng Index jumped 1.81 percent, and South Korea’s Kospi experienced a rise of 0.63 percent.
On Tuesday, foreign institutional investors (FIIs) continued their selling spree, offloading equities valued at Rs 3,399 crore, while domestic institutional investors (DIIs) were net buyers, acquiring equities worth Rs 3,508 crore.
Point of View
I believe it is crucial to present an accurate and unbiased perspective on market trends. The current upward momentum in the Indian indices is significant, notably influenced by external factors such as US inflation data. However, the underlying market dynamics also warrant close observation.
NationPress
20/08/2025
Frequently Asked Questions
What factors contributed to the rise in Nifty and Sensex?
The rise in Nifty and Sensex is primarily attributed to favorable US inflation data, which heightened expectations for a possible interest rate cut by the Federal Reserve.
Which sectors are leading the market gains?
The Nifty Metal and Nifty Realty sectors are currently leading the market gains, with significant increases noted in these areas.
What should investors watch for in the upcoming trading sessions?
Investors should monitor key support levels at 24,400 and 24,300, as well as resistance at 24,600, to gauge market direction.
How are foreign and domestic investors behaving in the current market?
While foreign institutional investors have been selling off equities, domestic institutional investors are actively purchasing, indicating differing strategies.
What is the outlook for the Indian stock market?
The outlook remains cautiously optimistic, but market participants should remain vigilant of potential volatility, especially given the current geopolitical context.
