Indian stock market today: Nifty hits 23,281, Sensex gains 500 points; FMCG, banking stocks lead

On Wednesday, Indian equities saw an upward trend, with benchmark indices climbing approximately 0.7% in early trading, driven by purchases in the FMCG, banking, cement, and auto sectors.

During morning sessions, the Nifty touched an intraday peak of 23,281, advancing by 162 points (0.70%), whereas the Sensex surged past 500 points (0.67%) to reach 74,505.

Among sectors, Nifty FMCG, Nifty PSU Bank, Nifty Cement, and Nifty Auto emerged as the leading gainers, climbing by as much as 1.45%.

Concurrently, Nifty Oil & Gas advanced by 0.54%, and Nifty Private Bank added 0.33%.

Conversely, Nifty MidSmall IT & Telecom dropped 0.68%, and Nifty MidSmall Healthcare, Nifty500 Healthcare, Nifty Pharma, and Nifty Chemicals experienced a decline ranging from 0.18% to 0.51%.

Market analysts noted that the overall market structure stayed fragile, burdened by high US bond yields and elevated crude oil prices that dampened investor sentiment.

“Over the last five sessions, foreign institutional investors have consistently been net sellers and may persist in offloading shares during market rallies due to the sustained high US 10-year Treasury yield,” they added.

According to analysts, the anticipated 25-basis-point rate hike by the US Federal Reserve was already factored into the prices, thereby making the central bank’s commentary on the economic outlook and future monetary policy actions more crucial for the markets.

In spite of the general market weakness, specialists pointed out that stock-specific opportunities still existed. Events like the appointment of a new MD and CEO at HDFC Bank and the introduction of new NPCI norms for digital transactions could sway the market.

From a technical perspective, analysts stated that the Nifty’s failure to hold above the 23,515 level negated the recent upward momentum. Back-to-back closes beneath the lower Bollinger Band, along with Tuesday’s bearish engulfing pattern, indicated strong selling pressure, yet they also hinted that fear might be reaching its peak.

The Nifty continues to trade within the 23,260-23,000 support range, providing some optimism for a rebound. However, a close below this band might bring the 22,600-21,800 zone into consideration, they noted.