Opening Bell: Sensex, Nifty50 surge nearly 1% amid positive global cues; Auto stocks gain most, Metals crack

The Indian markets continued its gaining streak, as both the benchmark indices – Sensex and Nifty50 – opened nearly 1 per cent higher on Wednesday. The surge was led by banking and financials along with IT stocks, while metal stocks were seen under pressure during the early morning trade today.

The BSE Sensex jumped around 420 points or 0.72 per cent to 58362.8, and Nifty50 gained over 142 points or 0.82 per cent to 17468.2 levels at the open. Following the benchmarks suite, the broader markets gained too, as Nifty Midcap 100 surged almost 211 points or 0.7 per cent to 29553 at open.

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As many as 45 stocks advanced and 5 declined in the early morning trade. Tata Consumer gained most by around 3 per cent, followed by Hero MotoCorp, Bharti Airtel, Maruti and Tata Motors each up between 1-2 per cent. On the contrary, ONGC cracked most by almost 4 per cent followed by Hindalco, Tata Steel, Tech Mahindra and JSW Steel each down between 1-2.5 per cent.

“Nifty is all set for a breakout above 17500. There is hope that the ongoing peace talks brokered by Turkey may lead to the end of the war. But these are early days. The breakout above 17500 Nifty is likely to be led by the financials,” Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said in a market open quote on Wednesday.

He added, the prospects for financials - leading banks, leading housing finance companies, the Fintech leader and select NBFCs - appear bright for FY23 and their valuations are fair.

“Pharma, housing related segments and telecom majors can lend support to the rally. But the upside to the rally is likely to be capped by profit taking and concerns arising from the hawkish Fed,” the market analyst Vijaykumar also said.