Indian stock markets opened with gains on Wednesday, as investor confidence received a boost following favorable assembly election results for the ruling party.
The Nifty 50 index opened at 25,065.80 points, gaining 52.65 points or 0.21 percent, while the Sensex index opened at 81,954.58 points, up by 319.77 points or 0.39 percent.
Market experts noted that the Reserve Bank of India’s (RBI) monetary policy announcement, scheduled for later in the day, would be a key event. However, most investors expect no changes in policy rates.
“After sessions of corrections, India is getting some support at the level of 25,800 for Nifty50. Good state election result for the ruling party, contrary to the exit polls, has brought some optimism in the domestic market. RBI policy outcome, though no cut is expected, a plausible change in stance to neutral is anticipated. And investors are likely to focus on the upcoming Q2 results where earnings are likely to improve marginally on a QoQ basis” said Vinod Nair, Head of Research, Geojit Financial Services.
Among sectoral indices on the National Stock Exchange, the Nifty PSU Bank index opened as the top gainer, with other indices also opening in the green.
In the Nifty 50 list, 38 stocks opened with gains, 11 stocks declined, and 1 remained unchanged.
“Nifty made a bounce back from expected support of 24750 and closed just above 25000 mark. With FIIs longs dropping further to 43 per cent, Nifty may face resistance around 25100/25150 range and any possibility of short covering can be expected above this range. Any break of crucial support of 24750 can witness another round of selling towards 24500/24300 range” said Soni Patnaik, AVP, Derivatives Research Analyst, JM Financial Services.
Meanwhile, other Asian markets showed mixed trends on Wednesday. Japan’s Nikkei 225 was up 0.83 per cent, while the Shanghai Composite fell sharply by 5.61 per cent. Hong Kong’s Hang Seng index also dropped by 3.04 per cent.
