Nifty, Sensex Open Flat as Q3 Earnings, FII Turnaround Buoy Market

The Nifty 50 index opened at 25,752.65 with a marginal gain of 27.25 points or 0.11 per cent, while the BSE Sensex opened at 83,553.59, rising by 102.63 points or 0.12 per cent.

Market experts highlighted that improving corporate earnings outlook and renewed buying interest from foreign institutional investors (FIIs) are positive indicators for market stability.

VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said, "The better-than-expected Q3 results and indications of continuing momentum in earnings growth, going forward, are positive factors that will keep the market resilient. The volatility in IT stocks may continue in response to incoming news relating to the sector. Overall, IT stocks may remain weak since the uncertainty surrounding the sector is huge and large institutional investors are unlikely to invest big time in IT stocks. This is the time to gradually increase exposure to equity. But many retail investors are increasing investments in gold and silver ETFs, which is a risky game in the present context."

He added, "Early signs of a shift in the investment strategy of FIIs are visible now. In the cash market, FIIs have been buyers in eight out of the last thirteen trading days. This trend and improving prospects for corporate earnings bode well for the market."

In the broader market indices on the NSE, Nifty 100 was marginally down by 0.02 per cent, while the Nifty Midcap index remained almost flat during early trade. The Nifty Smallcap index recorded a marginal gain of 0.09 per cent.

Among sectoral indices, mixed trends were observed. Nifty Auto declined by 0.05 per cent, while Nifty IT fell sharply by 0.99 per cent and Nifty Media declined by 0.23 per cent. On the positive side, Nifty Metal gained 0.37 per cent, Nifty PSU Bank rose by 0.37 per cent, and Nifty Realty edged higher by 0.02 per cent.

Ponmudi R, CEO of Enrich Money, said, "The Indian stock market is likely to begin the session on a steady to slightly positive footing, extending momentum after two consecutive days of gains supported by continued strength in banking, financials, energy, pharma, and select IT stocks amid improving sentiment. The market may remain range-bound in the absence of fresh triggers, with clearer direction expected only from sustained earnings momentum or improved global stability".

In the commodities market, crude oil prices were up marginally by 0.18 per cent to USD 62.44 per barrel.

Meanwhile, precious metals saw strong gains, with gold prices surging by 1 per cent to Rs 152,937 per 10 gm for 24 karat in the opening session on Wednesday. Silver prices also strengthened by 2 per cent to Rs 233,000 per kg.

On the geopolitical front, nuclear talks between the United States and Iran concluded a second round in Geneva on February 17, with both sides reporting "good progress" despite high regional tensions. Iran is expected to return in the next two weeks with detailed proposals to address the gaps, according to a United States official.

In other Asian markets on Wednesday, Japan's Nikkei 225 index surged by 1.13 per cent to 57,205, while Hong Kong's Hang Seng index gained 0.52 per cent to 26,705. Markets in Singapore, Taiwan, and South Korea remained closed for a holiday.

- ANI