Mumbai (Maharashtra) [India], January 22 : The Indian stock market opened on a positive note on Wednesday, with the Sensex gaining 366.08 points to open at 76,204.44, and the Nifty rising 87.60 points to start at 23,109.50.
Despite the marginal uptick, investor sentiment remains cautious amid global and domestic concerns. Of the Nifty 50 companies, 27 saw advances, 22 registered declines, and two remained unchanged in early trade.
Among the top gainers were Wipro, Infosys, Sun Pharma, TCS, and ITC. Conversely, BEL, Tata Motors, Power Grid, Adani Enterprises, and HDFC Life emerged as the top losers.
Ajay Bagga, a banking and market expert, commented on the underlying factors influencing market movements, particularly the impact of global policies.
He said, "Trump gains on the positives from a pro-business, deregulating stance are offset by fears on his unleashing a protectionist, isolationist agenda based on tariffs that could dent global supply chains and bring unbridled inflation. There is a thought that all this may be a negotiation tactic and saner thinking will prevail, with face-saving concessions and promises from all sides leading to a more sober reality.
He added, "India meantime is sitting on edge, as two major brokerages, Kotak and UBS talk of structural slowdown issues and the unattractiveness of the Indian markets. There is little hope that the Union Budget 2025 will provide any great growth impulse into the economy. With high FPI outflows continuing, Indian markets remain challenged."
Akshay Chinchalkar, Head of Research at Axis Securities, provided a technical perspective, cautioning about the prevailing bearish sentiment.
He stated, "Yesterday was a downside thrust day, with one stock gaining for more than five stocks that fell. The nifty dropped below 23,000 before recovering to close above it, but technically, breaking 23048 has emboldened bears."
"Immediate resistance now lies at 23324 followed by the 23440 - 23471 zone. The bearish flag which got confirmed yesterday has a near-term target of 22830 and 14-day momentum remains above oversold, so we aren't at any downside extreme, yet," Chinchalkar stated.
While the positive opening offers a respite, the broader market sentiment remains cautious due to ongoing foreign portfolio investment (FPI) outflows and global macroeconomic uncertainties.
Investors are closely watching developments in the lead-up to the Union Budget 2025 and global economic policies that could influence Indian markets.
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