Indian equities mirrored the positive global trends and closed on a positive note on Wednesday. The BSE Sensex registered its third consecutive day of gains, rising by 213.27 points or 0.33% to reach a settlement of 65,433.30. Similarly, the NSE Nifty saw an increase of 47.55 points or 0.25%, concluding at 19,444. Among the Nifty components, 29 ended in the green, while 22 declined.
Over the course of these three days of gains, the Sensex surged by 484.64 points, and the Nifty saw an advancement of 133.85 points.
Sector-wise, banking, financial services, media, and consumer durables segments closed with gains, while FMCG and Oil and Gas sectors experienced notable declines.
Analysts interpreted the market movement as follows:
Global markets displayed caution, awaiting the outcomes of the central bankers’ gathering at Jackson Hole, scheduled for Friday. As the earnings season approached its conclusion, the likelihood of another US rate hike and the resulting increase in bond yields contributed to heightened global market volatility. On the domestic front, positive sentiments prevailed due to robust demand in the banking sector, although the IT and pharma sectors limited the overall gains, according to Vinod Nair, Head of Research at Geojit Financial Services.
From a technical standpoint, the Nifty formed Doji candles for the second consecutive day. Indicators such as ADX and MACD remained inclined towards the negative side. Analysts advised cautiousness in entering new long positions unless the Nifty surpasses the 19,560 mark. The index stayed below the middle line of the Donchain channel on the daily chart, with potential support identified around the 17,250 levels, according to Om Mehra, Equity Research Analyst at Choice Broking.
In international markets:
US Market: Wall Street’s primary indexes exhibited gains on Wednesday, driven by expectations of Nvidia’s earnings results reinvigorating a rally in megacap growth stocks powered by artificial intelligence. There were hopes that Nvidia’s revenue would exceed Wall Street estimates. The Dow Jones Industrial Average was up 0.25%, the S&P 500 gained 0.52%, and the Nasdaq Composite advanced by 0.82%.
European Shares: European shares closed below their intraday highs due to indications of slowing economic activity in Europe. A strong performance by drugmaker Roche boosted the Swiss stock index to a one-week high, but the pan-European STOXX 600 closed 0.4% higher after touching a one-week high of 0.8% during the day.
Overall, the sentiment favored the bulls, with 2,080 stocks ending in the green and 1,541 stocks settling in the red.
