Stock trade today: Nifty50 opens above 25,500; BSE Sensex up over 400 points

opened in green on Wednesday on positive to mixed global cues. While Nifty50 went above 25,500, BSE Sensex was up over 400 points. At 9:17 AM, Nifty50 was trading at 25,538.70, up 114 points or 0.45%.

BSE Sensex was at 82,629.13, up 403 points or 0.49%.

Experts remain cautious as mixed global cues and range-bound movement in the Nifty keep investors on the sidelines. Analysts said the Nifty has been moving within a narrow band in recent sessions and may continue to do so in the near term.

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited claims, “There are two significant trends in the bazaar - one negative, other positive - which will have a bearing on how the trade moves in the near-term.

The negative factor is the continued weakness in IT stocks triggered by the Anthropic shock. Many leading IT names have crashed between 18 % to 26 % in the last one month alone. The positive factor is the FIIs turning buyers in February after a long time.

“The negative factor of sustained selling in IT stocks may be over and there is a possibility of some rebound in the segment. News of Anthropic’s Claude chatbot building partnership in software and services with IT firms indicates that there will be collaboration opportunities for Indian IT firms.

If the weakness in IT stocks subsides and the segment recovers, the tailwind of FII buying can lift the markets. Importantly, FII buying has fundamental support from a strong economy and rising corporate earnings.

Segments witnessing FII buying like financials, capital goods and pharmaceuticals are likely to remain resilient."

Wall Street ended higher on Tuesday, led by technology stocks as renewed optimism around artificial intelligence outweighed concerns about potential disruptions from the emerging technology.

Asian markets also opened in positive territory after the rally in US technology stocks helped ease worries about artificial intelligence that had unsettled investors in recent weeks.

In the commodities economy, gold prices remained largely steady on Wednesday following a decline of more than 1 per cent in the previous session.

The strength in the US dollar kept bullion prices under pressure by making dollar-denominated metals more expensive for overseas buyers.