Benchmark stock market indices opened Wednesday’s trading session on a positive note, backed by gains in financial and IT stocks.
The NSE Nifty Nifty hit a fresh record high of 23,441.95 after gaining 170 points, while the S&P BSE surged over 500 points.
The S&P BSE Sensex rose 524.83 points to 76,981.42 at 11:00 am, while the NSE Nifty50 gained 160.15 points to trade at 23,425.
Other broader market indices also gained during the session as volatility dipped further.
Among sectoral indices, high-weightage Nifty Bank, Nifty IT and Nifty Financials were up nearly 0.8%, while Nifty Media was the top gainer.
The top gainers on the Nifty50 were Coal India, BPCL, Tata Motors, Bajaj Finance and LTIM.
On the other hand, the top losers were Britannia, Titan, Asian Paints, HUL and Nestle India.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, “A subdued to weak opening is on the cards for local markets owing to bearishness in several Asian indices. Domestic investors would be cautious ahead of the CPI inflation and IIP data to be announced post market hours today, and hence stock-specific activity could continue.”
“Also, the May US inflation data and rate-setting decision would be keenly watched by global investors, as any increase in the number could prompt the Federal Reserve to delay its rate cut decision,” he added.
Meanwhile, Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “The 32% decline in India VIX during the last 5 days indicates that the days of heightened volatility are over and the market has entered a consolidation phase. From now on the focus will be on fundamentals and news flows.”
“There is a recent trend of investors/ speculators chasing momentum stocks with low floating stock and excessive valuations. This is a risky trade which investors should avoid,” he noted.
“The focus of investors should be on fairly valued quality growth stocks. Here, financials come on top. This segment has the potential to give decent returns in the medium to long term. IT stocks also have valuation comfort.”