MUMBAI — The Indian benchmark indices opened higher on Wednesday, a day
after uncertainties around US President Donald Trump’s trade tariffs triggered
a huge fall.
In early trade, the 30-stock Sensex rose to 76,209,
trading almost 370 points up (around 9.42 a.m.), while the Nifty 50 was up 95
points at 23,120.
Six out of the 12 sectors on the NSE declined, with Nifty
FMCG and Nifty Pharma gaining the most. Nifty Realty and Metal fell the most in
trade. Seven out of the 20 sectors compiled by BSE advanced.
The market breadth was skewed in favour of the sellers as
1,738 stocks advanced and 112 remained unchanged on the BSE.
According to market experts, after a positive opening,
Nifty can find support at 22,950 followed by 22,800 and 22,600. On the higher
side, 23,100 can be an immediate resistance, followed by 23,250 and 23,400.
"President Trump’s orders and announcements, so far,
have been disruptive. He is doing tough talking initially to send the message
that more stern measures are in the offing,” said the experts.
Trump’s threat to impose 100 per cent tariffs on BRICS if
they attempt dedollarisation is a repeat of his election campaign rhetoric. It
appears that the markets took this threat too seriously.
According to Akshay Chinchalkar, Head of Research, Axis
Securities, the bearish flag which got confirmed yesterday has a near-term
target of 22,830 and 14-day momentum remains above oversold, “so we aren't at
any downside extreme, yet.”
In the US, the three major indexes all rose at least 0.6
per cent, led by the Dow Jones Industrial Average, which was up 1.2 per cent
(rising more than 500 points) on Tuesday (US time) following Donald Trump's
return to the Oval Office.
In India, foreign institutional investors (FIIs) extended
their selling on the 13th day as they sold equities worth INR 5,920 crore on
January 21. On the other hand, domestic institutional investors bought equities
worth INR 3,500 crore on the same day.
