Mumbai: The Indian benchmark indices opened higher on Wednesday, a day after uncertainties around US President Donald Trump’s trade tariffs triggered a huge fall.
In early trade, the 30-stock Sensex rose to 76,209, trading almost 370 points up (around 9.42 a.m.), while the Nifty 50 was up 95 points at 23,120.
Six out of the 12 sectors on the NSE declined, with Nifty FMCG and Nifty Pharma gaining the most. Nifty Realty and Metal fell the most in trade. Seven out of the 20 sectors compiled by BSE advanced.
The market breadth was skewed in favour of the sellers as 1,738 stocks advanced, and 112 remained unchanged on the BSE.
According to market experts, after a positive opening, Nifty can find support at 22,950, followed by 22,800 and 22,600. On the higher side, 23,100 can be an immediate resistance, followed by 23,250 and 23,400.
“President Trump’s orders and announcements, so far, have been disruptive. He is doing tough talking initially to send the message that more stern measures are in the offing,” said the experts.
Trump’s threat to impose 100 per cent tariffs on BRICS countries if they attempt de-dollarisation is a repeat of his election campaign rhetoric. It appears that the markets took this threat too seriously.
According to Akshay Chinchalkar, Head of Research, Axis Securities, the bearish flag that was confirmed yesterday has a near-term target of 22,830, and 14-day momentum remains above oversold, “so we aren’t at any downside extreme yet.”
In the US, the three major indexes rose at least 0.6 percent, led by the Dow Jones Industrial Average, which was up 1.2 percent (more than 500 points) on Tuesday (US time) following Donald Trump’s return to the Oval Office.
In India, foreign institutional investors (FIIs) extended their selling on the 13th day, selling equities worth Rs 5,920 crore on January 21. On the other hand, domestic institutional investors bought equities worth Rs 3,500 crore on the same day.
—IANS
Infographics: Pinaki Paul
