Domestic benchmark indices Sensex and Nifty opened higher on Wednesday, tracking positive cues from global markets and buying in IT heavyweights. The rebound comes a day after a steep, IT-heavy selloff, sparked by fresh concerns over AI-led disruption.
At 9:18 am, the BSE Sensex rose 422.58 points, or 0.51%, to 82,648.50, after rising as much as 522 points in early trade. The NSE Nifty climbed 127.55 points, or 0.50%, to 25,552.20, briefly touching a high of 25,581.70.
“Nifty has strong resistance in 25850-26000 and strong support in 25350-25400 range. Currently nifty is trading sideways to bullish, traders can use buy on dips strategy,” said Gaurav Udani – Founder, Thincredblu Securities.
Among Sensex constituents, Tech Mahindra gained 2.77% to Rs 1383.85. HCL Technologies rose 2.66%, while Tata Consultancy Services (TCS), Infosys, and Power Grid advanced 2.42%, 2.33% and 1.23%, respectively.
Asian markets traded higher. Japan’s Nikkei 225 rose 1.44% to 58,145.08, while South Korea’s Kospi gained 2.37% to 6,111.34, and Hong Kong’s Hang Seng advanced 0.69% to 26,773.95.
Wall Street ended the overnight session on a positive note, with all three major indices closed in the green. The S&P 500 gained 0.77% to settle at 6,890.07, while the Dow Jones Industrial Average advanced 0.76% to end at 49,174.50. The Nasdaq Composite jumped 1.04% to close at 22,863.68.
There are two significant market trends, one negative and the other positive, that will influence how the market moves in the near term, said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. “The negative factor is the continued weakness in IT stocks triggered by the Anthropic shock,” he said.
Vijayakumar said many leading IT names have dropped between 18% and 26% in the last month alone. “The positive factor is the FIIs turning buyers in February after a long time,” he noted.
“The negative factor of sustained selling in IT stocks may be over and there is a possibility of some rebound in the segment. News of Anthropic’s Claude chatbot building partnership in software and services with IT firms indicate that there will be collaboration opportunities for Indian IT firms,” Vijayakumar said.
“Importantly, FII buying has fundamental support from strong economy and rising corporate earnings. Segments witnessing FII buying like financials, capital goods and pharmaceuticals are likely to remain resilient,” Vijayakumar added.
In the previous session on Tuesday, the Sensex plunged 1,068.74 points, or 1.28%, to settle at 82,225.92, while the Nifty slipped 288.35 points, or 1.12%, to finish at 25,424.65.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.