Opening Bell: The stock market of India finally halted its post-budget tank on Wednesday as the BSE Sensex gained 47 points to 38,777 while the Nifty 50 index went up 9 points to 11,565 levels. Bank Nifty index shot up 131 points to 30,700 levels. Yes Bank, Tata Steel, Coal India Limited and IndusInd Bank were among the top gaining stocks while TCS, Ultratech Cement, Bharti Infratel, Sun Pharma and Dr. Reddy’s Labs were among the top losing stocks in the intraday morning session trade.
Speaking on the current market trend Nagaraj Shetti, Technical Research Analyst, HDFC securities said, “After showing a sharp weakness in the last couple of sessions, the Nifty seems to have halted its downside momentum on tuesday and closed the day on a flat note amidst a volatility. A small positive candle was formed on Tuesday with long lower shadow. Technically, this pattern indicates a high wave type candlestick pattern. Normally, a formation of such high wave type candle patterns after a reasonable weakness could be viewed for a minor upside bounce.” He said that the short term trend of Nifty is in the process of showing upside bounce from the lows. Important supports to be watched around 11,450-425 levels and crucial overhead resistance is placed around 11,625 levels.
Public sector stocks led the bull run on Dalal Street. PSU major Bank of Maharashtra share price shot up 2.5 per cent, Bank of India shares went up 1.23 per cent, Bank of Baroda and Central Bank of India stocks rose to near 1 per cent, Coal India Ltd share price went northward above 2 per cent, shares of Indian Overseas Bank scaled 3.8 per cent, MMTC counter added near 1.1 per cent while Oriental Bank of Commerce shares jump near 1.5 per cent.
Metal stocks witnessed mixed trend as the BSE metal index went up near 0.47 per cent but most of the metal majors were in red zone except a few. Tata Steel share price shot up near 1.5 per cent in the opening bell but slowly and steadily it went down to around 0.5 per cent gains from the Tuesday close. NMDC counter was up over 2.5 per cent. However, Hindalco Industries stocks were down near 1.5 per cent, Hindustan Zinc went down near 0.5 per cent, SAIL (India) nudged down by near half a per cent.
Asian shares turned mixed on Wednesday while rising Treasury yields lifted the dollar as markets wondered if the world`s most powerful central banker would confirm or confound expectations for US policy easing this month. MSCI`s broadest index of Asia-Pacific shares outside Japan advanced 0.4%, after three sessions of losses. South Korea edged up 0.4%, but Japan`s Nikkei lagged with a loss of 0.2%. E-Mini futures for the S&P 500 dithered either side of flat in very slow trade.
Wall Street had been duly circumspect, with the Dow ending Tuesday down 0.08%, while the S&P 500 added 0.12% and the Nasdaq 0.54%.