Benchmark stock market indices opened higher on Wednesday, breaking its 4-day losing streak, despite rising crude oil prices due to West Asia war ceasing to end.
The S&P BSE was down 216.67 points to 74,342.57, while the NSE Nifty50 lost 68.50 points to 23,311.05 as of 9:47 am.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that the market has been discounting an early resolution to the West Asia crisis and decline in the price of crude.
“Now, this appears difficult. Consequently, India’s macros are taking a hit. As the CEA said, this has become a ‘live Balance of Payments stress test.’ Rupee has touched a new low of 95.63 to the dollar. The downside risk to India’s growth and upside risk to inflation has increased. This has negative implications for markets,” he added.
After the opening bell, Asian Paints Ltd led the Sensex gainers, rising 3.22%. It was followed by Adani Ports and Special Economic Zone Ltd, which gained 2.00%. Tata Steel Ltd moved up 1.39%, while Bharat Electronics Ltd added 1.04%. Bharti Airtel Ltd also opened higher, rising 0.95%.
Power Grid Corporation of India Ltd saw the sharpest fall, dropping 2.35%. Titan Company Ltd declined 1.49%, NTPC Ltd was down 1.18%, Bajaj Finance Ltd slipped 0.94%, and State Bank of India Ltd fell 0.89% in early trade.
“With the AI trade still intact, FIIs are likely to continue on the sell-mode. The derivatives data indicate this. Investors should opt for safety now. Better to remain in cash till there is clarity on the crude price,” said Vijaykumar.
“Pharmaceuticals seam to be the safe sector now. Long-term investors can slowly accumulate large banking stocks on declines,” he added.
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