Indian stock markets started Wednesday on a positive note, buoyed by better-than-expected Q3 earnings and tentative signs of a return in foreign investor activity, which experts believe could maintain market resilience.
The Nifty 50 index opened at 25,752.65, a marginal gain of 27.25 points (0.11 per cent), whilst the BSE Sensex rose by 102.63 points (0.12 per cent) to open at 83,553.59.
As key indicators for stability, Market analysts pointed to an improving corporate earnings outlook and renewed buying interest from foreign institutional investors (FIIs). VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted: "The better-than-expected Q3 results and indications of continuing momentum in earnings growth are positive factors that will keep the market resilient."
However, he warned that volatility in IT stocks is likely to persist due to high sector uncertainty, suggesting that large institutional investors are unlikely to make significant moves there. "Overall, IT stocks may remain weak," Vijayakumar added, advising a gradual increase in equity exposure, whilst cautioning that retail investors increasing investments in gold and silver ETFs is "a risky game in the present context."
Regarding FII activity, Vijayakumar observed: "Early signs of a shift in the investment strategy of FIIs are visible now."
In the overall market, there were mixed trends. The Nifty Midcap index was flat, while the Nifty 100 index was down marginally by 0.02 pc. However, the Nifty Smallcap index was up marginally by 0.09 pc. On the sectoral front, the Nifty IT index was down sharply by 0.99 pc. However, the Nifty Metal and Nifty PSU Bank indices were up by 0.37 pc each.
Ponmudi R, CEO of Enrich Money, commented: "The Indian stock market is likely to begin the session on a steady to slightly positive footing, extending momentum after two consecutive days of gains... The market may remain range-bound in the absence of fresh triggers."
In commodities, crude oil prices edged up by 0.18 per cent to USD 62.44 per barrel. Precious metals saw substantial gains, with gold surging 1 per cent to ₹152,937 per 10 gm, and silver strengthening 2 per cent to ₹233,000 per kg.
Geopolitically, talks between the United States and Iran in Geneva concluded with reports of "good progress," with Iran expected to return in two weeks with detailed proposals. Across Asia, Japan's Nikkei 225 surged by 1.13 per cent, and Hong Kong's Hang Seng gained 0.52 per cent.
Also read: India’s Russia imports drop 40 pc in Jan, crude oil hit
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