The Sensex and Nifty opened higher Wednesday after faltering on Indian Air Force's attack on Pakistan-harboured terrorist camps yesterday. While the Sensex rallied 232 points to 36,205 in early trade, the Nifty climbed 58 points to 10,893. YES Bank (2.20%), Sun Pharma (1.41%) and M&M (1.29%) were the top Sensex gainers.
Of 30 Sensex stocks,27 were trading in the green .
Top Sensex losers were HCL Tech (0.84%), NTPC (0.55 %) and PowerGrid (0.33%). On Tuesday, the BSE Sensex closed 239.67 points, or 0.66 per cent, lower at 35,973.71, and the NSE Nifty ended at 10,835.30, down by 44.80 points or by 0.41 per cent.
Meanwhile, the mid cap and small cap indices were trading 139 points and 120 points higher in early trade. Auto and banking stocks led the gains with the BSE auto and BSE bankex rising 234 points and 256 points, respectively. Of 19 BSE indices, 17 were trading in the green. IT stocks were the top sectoral losers on the BSE .
Meanwhile, the rupee opened marginally lower at 71.11 per dollar on today versus previous close of 71.06. Market breadth was positive with 948 stocks trading higher compared to 193 falling on the BSE.
On a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 1,674 crore on Tuesday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs 720 crore, provisional data available with BSE showed.
Mustafa Nadeem, CEO at Epic Research said, "At this point in time, we believe the markets are in the range of 10980 - 10700. The volatility index is, of course, up by 11% which indicates the volatility is there and some kind of panic is inherent in the market. Hence traders should keep a check at lower levels of Nifty which are placed at 10750 - 10720. Traders should look for some kind of hedging using put options. From here, we believe there may be some consolidation in Nifty between 10900 - 10750 for coming sessions as the rise in volatility has indicated traders rushing for Puts and hedging their positions. There may be further escalations on the geopolitical front and hence we suggest traders to keep the portfolio's intact with a tight stop loss and hedging using options."
Asian shares were higher in muted trading Wednesday as investors watch the second summit between President Donald Trump and North Korean leader Kim Jong Un in Vietnam.
Japan's benchmark Nikkei 225 added 0.5 percent in early trading to 21,550.02. Australia's S&P/ASX 200 gained 0.3 percent to 6,148.70. South Korea's Kospi edged up nearly 0.2 percent to 2,230.37. Hong Kong's Hang Seng added 0.5 percent to 28,909.38, while the Shanghai Composite index gained 0.9 percent to 2,966.84.
Edited by Aseem Thapliyal