Mumbai: Indian equity benchmarks opened higher on Wednesday following a significant decline of nearly 6 per cent during the previous session.
However, early trading saw a reversal of fortunes as the markets relinquished their initial gains. As of 9:55 a.m., the Sensex stood at 71,946, marking a decline of 132 points or 0.18 per cent, while the Nifty was down 20 points or 0.05 per cent, settling at 21,864.
Both midcap and smallcap stocks showed negative trends, with the Nifty Midcap 100 index down by 319 points or 0.65 per cent at 48,831, and the Nifty Smallcap 100 index registering a decline of 122 points or 0.78 per cent, at 15,582.
The India VIX, a volatility gauge for the stock market, decreased by 20.11 per cent to reach 21.37.
In sectoral performance, FMCG, pharmaceuticals, IT, automotive, and consumer goods showed strong gains, while PSU banks, metals, real estate, and energy sectors faced losses.
Among the constituents of the Sensex, HUL, Asian Paints, Nestle, Kotak Mahindra Bank, HCL Tech, and ITC emerged as top gainers, whereas L&T, Power Grid, NTPC, SBI, and ICICI Bank led the losses.
Commenting on market trends, Pradeep Gupta, Co-founder & Vice-chairman of Anand Rathi Group, highlighted, “Historical data indicates that despite initial volatility, markets tend to recover and perform well over the long term. Following previous elections in 2014 and 2019, the Indian stock market witnessed substantial gains in the months subsequent to the election results.”
“Investors are advised to adopt a long-term approach, maintaining a diversified portfolio and avoiding reactionary selling. Strong fundamentals and resilience to political changes are key in navigating market volatility,” Gupta emphasized.
