Indian benchmark indices showed moderate gains early on Wednesday, supported by positive global cues, indicating a consolidation phase in the stock market. By 9:30 am, Sensex rose by 105 points (0.12%) to 85,630, and Nifty climbed 40 points (0.16%) to 26,217. Notably, the Nifty Midcap 100 and Nifty Smallcap 100 outperformed the benchmark indices, with gains of 0.31% and 0.53%, respectively.
Hindalco Industries, Axis Bank, and Cipla were among the top gainers in the Nifty Pack, while Tech Mahindra, TCS, Titan Company, Dr. Reddy’s Labs, and Tata Consumer were among the losers. Sectoral indices like Media, Metal, and Realty saw significant gains, with increases of around 0.82%, 0.58%, and 0.78%, respectively. However, Nifty IT led the losses with a decline of 0.49%.
Market experts predict that the Nifty may continue its upward trend towards resistance levels at 26,202 and 26,330, with 26,000 likely to act as a near-term support level. Analysts anticipate a consolidation phase in the market as the year 2025 concludes, supported by strong domestic macros and growth expectations in the upcoming quarters.
The market is expected to remain resilient due to domestic inflows and DII buying, although FIIs may engage in selling during rallies, preventing significant breakouts. The recent announcement by the RBI regarding an additional Rs 2 lakh crore OMO to boost liquidity and lower yields is seen as a positive move that could enhance credit growth and benefit bank stocks.
In the Asia-Pacific region, markets traded with a positive bias, with China’s Shanghai index and Shenzhen index advancing, along with gains in Japan’s Nikkei and Hong Kong’s Hang Seng Index. The US markets closed mostly in the green zone, with Nasdaq, S&P 500, and Dow posting gains. Foreign institutional investors (FIIs) sold equities worth Rs 1,795 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 3,812 crore.
