Indian markets began Wednesday’s trading session with notable gains, buoyed by a global rally. The Nifty 50 index opened with a gain of 296.85 points, or 1.24%, reaching 24,289.40 points. Simultaneously, the BSE Sensex opened at 79,565.40 points, up by 972.33 points, or 1.24%.
Among the Nifty 50 companies, 48 saw advances, while only 1 company experienced a decline, and 1 remained unchanged at the time of this report.
The Nifty Next 50 index surged more than 1.8%, reaching 71,577.65 points. Both the Nifty Midcap and Nifty Small Cap indices also contributed to the rally, each gaining over 1%.
“Volatility means moves will be sharp, and we still recommend avoiding trades. For investors, it is as good a time as any to take long-term exposure and benefit from the multi-decade India Growth Story. Just don’t try to pick market bottoms or tops. No one gets that right consistently and profitably,” advised Ajay Bagga, Banking and Market Expert, to ANI.
Almost all sectoral indices on the National Stock Exchange saw increases, including Nifty Bank, Nifty Auto, Nifty FMCG, and Nifty IT, which each surged around 1%.
Quarterly financial announcements are set for today from companies such as Pidilite Industries, Godrej Consumers, Apollo Tyres, and Aditya Birla Fashion & Retail, among others.
Asian markets also experienced a rally after the Bank of Japan intervened to stabilize market conditions by opting not to raise interest rates. The Bank of Japan’s Deputy Governor, Shinichi Uchida, stated, “The Bank needs to maintain monetary easing with the current policy interest rate for the time being, given the extreme volatility in financial and capital markets.”
In the Asian stock markets, Japan’s Nikkei 225 surged more than 2%, Hong Kong’s Hang Seng increased by more than 1.26%, and Taiwan’s Weighted Index gained more than 3.5% in Wednesday’s trading.
US markets also closed with gains on Tuesday, as the S&P 500 and Nasdaq indices each surged more than 1%. Experts attributed this uptick to a renewed wave of dip buying that spurred the rally in U.S. stocks.
On Tuesday, both benchmark indices, the Nifty50 and the S&P BSE Sensex, initially rose by about 1.2% but later reversed gains as traders opted to lock in profits. Over the past three sessions, both indices have experienced a decline of roughly 4%.
Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services, noted, “We expect the markets to remain under pressure until global volatility subsides. The ongoing results season and the Reserve Bank of India’s (RBI) monetary policy will further add to the volatility.”
Avinash Gorakshakar, head of research at Profitmart Securities, commented, “While the rate pause is priced in, markets will take any dovish commentary from the Reserve Bank of India as a positive. However, at elevated valuations, the upside potential for the markets is capped.”
Asian markets opened on a positive note, with the MSCI Asia ex-Japan index up by 1.3% and Japan’s Nikkei 225 increasing by 2.7%.
Real estate stocks may see a rise as traders await news on a possible amendment to the Finance Bill. Reports suggest that the amendment could offer taxpayers a choice between 12.5% long-term capital gains (LTCG) taxes without indexation or 20% LTCG with indexation for properties purchased before July 23, 2024.
Finance Minister Nirmala Sitharaman is expected to present this amendment later today.
Among the Nifty 50 companies, 48 saw advances, while only 1 company experienced a decline, and 1 remained unchanged at the time of this report.
The Nifty Next 50 index surged more than 1.8%, reaching 71,577.65 points. Both the Nifty Midcap and Nifty Small Cap indices also contributed to the rally, each gaining over 1%.
“Volatility means moves will be sharp, and we still recommend avoiding trades. For investors, it is as good a time as any to take long-term exposure and benefit from the multi-decade India Growth Story. Just don’t try to pick market bottoms or tops. No one gets that right consistently and profitably,” advised Ajay Bagga, Banking and Market Expert, to ANI.
Almost all sectoral indices on the National Stock Exchange saw increases, including Nifty Bank, Nifty Auto, Nifty FMCG, and Nifty IT, which each surged around 1%.
Quarterly financial announcements are set for today from companies such as Pidilite Industries, Godrej Consumers, Apollo Tyres, and Aditya Birla Fashion & Retail, among others.
Asian markets also experienced a rally after the Bank of Japan intervened to stabilize market conditions by opting not to raise interest rates. The Bank of Japan’s Deputy Governor, Shinichi Uchida, stated, “The Bank needs to maintain monetary easing with the current policy interest rate for the time being, given the extreme volatility in financial and capital markets.”
In the Asian stock markets, Japan’s Nikkei 225 surged more than 2%, Hong Kong’s Hang Seng increased by more than 1.26%, and Taiwan’s Weighted Index gained more than 3.5% in Wednesday’s trading.
US markets also closed with gains on Tuesday, as the S&P 500 and Nasdaq indices each surged more than 1%. Experts attributed this uptick to a renewed wave of dip buying that spurred the rally in U.S. stocks.
On Tuesday, both benchmark indices, the Nifty50 and the S&P BSE Sensex, initially rose by about 1.2% but later reversed gains as traders opted to lock in profits. Over the past three sessions, both indices have experienced a decline of roughly 4%.
Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services, noted, “We expect the markets to remain under pressure until global volatility subsides. The ongoing results season and the Reserve Bank of India’s (RBI) monetary policy will further add to the volatility.”
Avinash Gorakshakar, head of research at Profitmart Securities, commented, “While the rate pause is priced in, markets will take any dovish commentary from the Reserve Bank of India as a positive. However, at elevated valuations, the upside potential for the markets is capped.”
Asian markets opened on a positive note, with the MSCI Asia ex-Japan index up by 1.3% and Japan’s Nikkei 225 increasing by 2.7%.
Real estate stocks may see a rise as traders await news on a possible amendment to the Finance Bill. Reports suggest that the amendment could offer taxpayers a choice between 12.5% long-term capital gains (LTCG) taxes without indexation or 20% LTCG with indexation for properties purchased before July 23, 2024.
Finance Minister Nirmala Sitharaman is expected to present this amendment later today.
Source Agencies
