Indian Stock Market Sees Positive Opening Amidst Global Uncertainty

The Indian stock market witnessed a positive start on Wednesday as key indices opened with gains. Despite foreign investor sell-offs, the Nifty and Sensex indices showed upward movement. Experts anticipate stock-specific action amid Q3 results and await clarity post-Trump inauguration.

The Indian stock market sustained its positive momentum on Wednesday with both key indices posting modest gains at the opening bell.

The Nifty index climbed by 74.40 points, or 0.32 percent, to start at 23,250.45 points, while the BSE Sensex index increased by 400.51 points, or 0.52 percent, opening at 76,900.14 points.

Analysts highlighted persistent selling pressure from foreign investors, with speculations suggesting that clarity may emerge only after Donald Trump's inauguration on January 20. Reports indicate possible initial low tariff hikes by Trump that could impact major US exporters, potentially stabilizing the dollar and US bond yields. The Foreign Institutional Investor (FII) selling is expected to restrain any significant market rallies, with substantial stock-specific action likely in response to Q3 corporate earnings, as noted by V K Vijayakumar, a chief investment strategist at Geojit Financial Services.

In sectoral trading, indices like Nifty FMCG, Nifty Pharma, and Nifty PSU Bank experienced slight declines, while others such as Nifty IT, Media, Metal, Realty, Bank, and Auto exhibited gains. Out of the Nifty 50 stocks, 29 opened higher while 20 saw declines, with top performers being Tech Mahindra and Tata Steel.

A slew of Q3 earnings announcements are expected, including HDFC Life Insurance, Oracle Financial Services, and several major banks. Analysts are closely monitoring support and resistance levels in anticipation of further market movements, emphasizing recent bullish patterns witnessed in the Nifty index, according to Akshay Chinchalkar from Axis Securities.

Meanwhile, several Asian markets also displayed mixed performances. Japan's Nikkei 225 index rose by 0.40 percent, Hong Kong's Hang Seng index gained 0.22 percent, and South Korea's KOSPI increased by 0.22 percent. Conversely, Taiwan's Weighted index and Singapore's Straits Times reported losses at the report's release time.

(With inputs from agencies.)