opened on a positive note Wednesday morning, with the starting at 24,991.00 from its previous close of 24,868.60 and trading at 24,991.35, up 122.75 points or 0.49 per cent, at 9.40 am.
opened at 81,504.36 against its previous close of 81,101.32 and was at 81,553.16, higher by 451.84 points or 0.56 per cent, driven primarily by strong performance in information technology stocks and renewed foreign institutional investor interest.
The rally came after snapped their 11-day selling streak, recording net inflows of ₹2,041.95 crore on Tuesday, while Domestic Institutional Investors (DIIs) added ₹176.35 crore.
“FIIs who sold in India and moved money to other markets have gained. Therefore, they might do it again. A change in this trend will happen when indications of a recovery in earnings emerge,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
Information technology stocks dominated the gainers list, with Wipro leading the charge at ₹254.89, up 2.30 per cent, followed by HCL Technologies at ₹1,457.70, gaining 2.14 per cent.
Tata Consultancy Services rose 1.82 per cent to ₹3,105.00, while Tech Mahindra advanced 1.57 per cent to ₹1,521.70. Bharat Electronics Limited also contributed to the gains, rising 1.45 per cent to ₹377.35.
The automobile sector faced selling pressure, with Hero MotoCorp leading the losers at ₹5,372.50, down 0.94 per cent. Eicher Motors declined 0.44 per cent to ₹6,844.50, Bajaj Auto fell 0.38 per cent to ₹9,347.50, and Maruti Suzuki dropped 0.37 per cent to ₹15,308.00. Mahindra & Mahindra also declined 0.36 per cent to ₹3,682.90.
“The Nifty once again faced resistance near the 24,900 level for the second consecutive session and ended with a modest gain of 92 points,” noted Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking. “While buying interest is visible at lower levels, the 24,900–25,000 zone continues to act as a stiff hurdle.”
Technical analysts remain cautiously optimistic about the market’s near-term prospects. “Nifty closed Tuesday on a firm note, ending near 24,868, but the index continues to trade within a tight consolidation zone,” said Hariprasad K, SEBI-registered Research Analyst and Founder of Livelong Wealth. “A sustained move above 25,000 could trigger momentum towards 25,150–25,250, whereas a breakdown below 24,650 may drag Nifty to 24,500–24,350.”
The banking sector showed mixed signals with Bank Nifty trading at 54,216 levels. “Bank Nifty has the potential to test the 54,500–54,600 resistance band, further reinforced by an ascending trendline converging near the psychological 55,000 mark,” Hariprasad K added. “Investor sentiment remains constructive on banking sector stability, supported by global liquidity flows.”
Commodity markets remained volatile with crude oil futures trading higher amid geopolitical tensions in West Asia.
November Brent oil futures were at $66.94, up 0.83 per cent, while September crude oil futures on MCX traded at ₹5,571, gaining 0.49 per cent. “Crude oil traded higher in a highly volatile session, supported by renewed geopolitical tensions and U.S. policy actions,” said Rahul Kalantri, VP Commodities at Mehta Equities.
Bullion markets witnessed extreme volatility with gold recording fresh highs before retreating. “Gold and silver prices remained extremely volatile, with gold recording a fresh high and silver breaching the $41.70 mark for the first time in 14 years,” Kalantri noted. “However, both metals failed to sustain at the top, slipping after the U.S. revised employment data showed nearly one million jobs lost.”
Looking ahead, market participants are focusing on upcoming U.S. inflation data and Federal Reserve policy direction. “Market focus will be on US inflation data this week, while Infosys outperformed Tuesday with a 4.85 per cent surge after announcing a board meet on 11 September to consider a share buyback,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities.
Despite the positive opening, analysts cautioned about high valuations constraining potential rallies. “Investors should understand that the major challenge that the market is facing now is the high valuations, particularly in the broader market, which will constrain any potential rally,” Vijayakumar warned, highlighting India’s underperformance compared to other Asian markets over the past year.