Indian equity indices opened Wednesday’s trading session on a higher note. The NSE Nifty 50 rose 40 points or 0.16% to open at 25,186. The BSE Sensex opened 134 points or 0.16% higher at 82,164.
The Bank Nifty opened 100 points or 0.18% higher at 56,597. Similarly, the small and midcap stocks opened the day on a positive note. The Nifty Midcap surged 193 points or 0.33% to open at 58,517.
“The drift in the market due to a lack of positive triggers and renewed selling by FIIs poses short-term challenges to the market. It is important to appreciate the fact that the biggest challenge to the market is the poor earnings growth, and this is the fundamental factor behind FII selling. The Q2 results are unlikely to change the sentiments since the postponement of buying following the GST cuts impacted corporate sales in September. But, post-September, the story is different. Automobiles and white goods are witnessing brisk sales, and in the low-interest regime, with more rate cuts to come, this demand will sustain,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
“These positives will be reflected not in the ongoing Q2 results season but in the Q3 results. The market will soon start discounting that, and that is when a healthy market rally will begin and sustain,” added Vijayakumar.
Let’s take a look at the key factors to watch out for today’s trading session
Early gainers and laggards
In early trade, among the Nifty 50, top gainers at this hour were Jio Financial Services, Adani Enterprises, Bajaj Finserv, Bajaj Finance, and NTPC. On the flip side, the key laggards in the Nifty 50 pack included Tech Mahindra, Titan, Infosys, Axis Bank, and Dr Reddy’s Lab.