Source : INDIA TODAY NEWS
Benchmark indices were trading lower in early trade on Wednesday, with the Sensex down over 200 points and the Nifty hovering around 24,400.
The BSE Sensex was at 77,942.17, down 212.08 points or 0.27%, at 9:21 am. The index had opened at 78,154.25 and touched an early high of 78,155.62 before slipping to a low of 77,865.60.
The Nifty 50 was at 24,415.10, down 56.60 points or 0.23%. It opened at 24,472.45 and moved between an early high of 24,473.30 and low of 24,390.60.
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Hindalco Industries was the biggest gainer among Nifty 50 stocks, rising 3.67% to Rs 1,087.65. Tech Mahindra gained 0.77% to Rs 1,655.70, while Bajaj Auto rose 0.67% to Rs 11,796.
Nestle India was up 1.27% at Rs 1,512.20. Grasim Industries gained 0.73%, while ONGC, State Bank of India and Tata Steel also traded higher.
Financial stocks were among the key drags. Bajaj Finserv fell 1.15%, while Max Healthcare declined 1.11%. Kotak Mahindra Bank fell 0.92%, SBI Life Insurance declined 0.85% and Bajaj Finance was down 0.50%.
Among major banks, HDFC Bank was down 0.55% at Rs 725, ICICI Bank fell 0.50% to Rs 1,422.40 and Axis Bank declined 0.28% to Rs 1,226.30.
IT stocks were largely under pressure. TCS fell 0.56% to Rs 2,432.10, while Infosys declined 0.48% to Rs 1,185. HCLTech was almost flat at Rs 1,365, while Tech Mahindra bucked the trend with a 0.77% gain.
Among other major stocks, Mahindra & Mahindra fell 0.53%, Larsen & Toubro declined 0.50% and Reliance Industries was down 0.32%.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the market was “defying a breakout on the upside” and moving sideways, with rising crude prices emerging as the principal factor restraining a rally.
“The principal factor restraining a rally is the strengthening Brent crude which has again moved above $89 level,” Vijayakumar said.
He pointed to the continuing US-Iran tensions, including the latest attack by the US military on a Panama-flagged container ship, and said Iran appeared to be hardening its stance on the opening of the Strait of Hormuz.
“This might keep crude prices elevated constraining a rally in the market,” he said.
However, Vijayakumar said India’s growth outlook was improving, providing a positive factor for equities.
“On the positive side, India’s growth resilience is getting better,” he said, citing an SBI report that projects FY27 GDP growth at 8%, compared with the RBI’s 6.7% estimate.
“This optimism is based on the trends in most leading indicators. If this turns out to be true, corporate earnings for FY27 will be much better-than-expected. This is a bullish factor,” he said.
Vijayakumar also pointed to heightened activity in the mid- and small-cap segments.
“A significant trend in the market is the hyper activity in the mid and small-cap segments where stocks are responding to results and news,” he said.
The market was still in the opening phase of trading at 9:21 am, so the early moves remained subject to change.
– Ends
SOURCE :- TIMES OF INDIA
