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Indian benchmarks open flat as IT stocks lead gains amid mixed cues
The Sensex edged up 0.02% while the Nifty slipped 0.03% in early trade on Wednesday, with technology shares posting the strongest gains. Investors weighed supportive domestic signals—such as the finance minister’s tax‑policy comments and RBI’s currency measures—against global headwinds from US yields and oil prices.
By T Ivan Nischal ·
What happened
The Sensex edged up 0.02% while the Nifty slipped 0.03% in early trade on Wednesday, with technology shares posting the strongest gains. Investors weighed supportive domestic signals—such as the finance minister’s tax‑policy comments and RBI’s currency measures—against global headwinds from US yields and oil prices. Sensex edged up while Nifty slipped; IT stocks led gains as domestic policy cues offset global headwinds.
TL;DR
Sensex edged up while Nifty slipped; IT stocks led gains as domestic policy cues offset global headwinds.
Key points
- Sensex opened at 73,049.76 (+0.02%) and Nifty at 22,715.75 (‑0.03%)
- IT sector topped gains, rising over 1%
- Finance Minister Nirmala Sitharaman signaled a review of LTCG and STT taxes, boosting sentiment
- Rupee appreciated ~1.5% after RBI’s anti‑speculation measures
- US 10‑year yield at ~5.2% and Brent crude near $106 remain equity headwinds
Mumbai — Domestic equity benchmarks opened on a muted note on Wednesday, with the Nifty starting at 22,715.75, down 6.20 points (0.03%), and the Sensex at 73,049.76, up 15.98 points (0.02%). The market’s direction was mixed, but technology stocks led the rally.
Nifty IT emerged as the top gainer, climbing more than 1%, followed by Nifty Mid‑Small IT & Telecom and Nifty FMCG, each rising up to 0.38%. Nifty Media and Nifty Private Bank also traded in positive territory. In contrast, Nifty Consumer Durables fell 0.67% and healthcare‑related indices slipped as much as 0.6%.
Market experts noted that Tuesday’s sharp rally in the Nifty was unexpected in an otherwise weak, down‑trending market and was largely driven by short‑covering activity. The catalyst for the upswing was Finance Minister Nirmala Sitharaman’s remarks that the government would carefully review stakeholder feedback on the long‑term capital gains (LTCG) tax and the securities transaction tax (STT). Those comments sparked hopes of policy adjustments and lifted investor sentiment.
Analysts also highlighted the Reserve Bank of India’s recent steps to curb currency‑market speculation, which helped the rupee appreciate roughly 1.5% over the past two trading sessions. However, caution remains as the US 10‑year Treasury yield hovers around 5.2% and Brent crude trades near $106 a barrel, both seen as significant headwinds for equities.
Despite these pressures, sectors such as financials, telecom, metals and automobiles are expected to stay relatively resilient on the back of healthy second‑quarter earnings forecasts. Technically, the recent surge has revived hopes of a move toward the 23,200 level, though the index is approaching a congestion zone that could impede further upside. Immediate support is identified around 22,550, while a decisive break above the 22,787‑22,880 hurdle could strengthen bullish momentum.
Asian equities also rebounded after two consecutive sessions of losses, buoyed by expectations that the US Federal Reserve may adopt a less aggressive stance on interest‑rate hikes next year. Crude oil prices advanced as traders weighed supply risks from clashes between Yemen’s Iran‑aligned Houthis and Saudi Arabia, alongside monitoring the potential increase in Russian diesel supplies to global markets.