Markets are trading higher ahead of third quarter earnings and economic data; Sensex near 61k, Nifty 59 above 18,150; RIL, Bajaj Finance, Kotak, the best bulls in Bank ICICI


Indian markets were on a bullish momentum at the start of Wednesday’s trading session as investors await key third quarter corporate results and macroeconomic data. With the exception of IT stocks, all other sector indices traded higher. Energy, banking, metals, oil and gas, and consumer durables stocks outperformed. In the opening bell, Sensex recovered over 61,000 points and Nifty 50 approached level 18,185.

By 10:10 am, Sensex was trading at 60,989.69, up 372.8 points or 0.62%. Nifty 50 posted an increase of 18,153.90 from 98.15 points or 0.54%.

In terms of sector indices, on the BSE, the Bankex jumped by nearly 375 points. The Metal and Oil & Gas indices jumped nearly 1% each. The energy index climbed 1.4%.

The bulls on Sensex were – Reliance Industries, Kotak Bank, SBI, Bajaj Finance, IndusInd Bank, HDFC and ICICI Bank gaining between 1-2%.

The bears on Sensex were – Titan, Tech Mahindra, TCS, Wipro and Dr Reddy’s Lab slipped between 0.5 and 1%.

Major IT companies like Infosys, TCS and Wipro will be the center of attention today ahead of their third quarter results.

The Indian government will release CPI inflation data for December and industrial production for November today.

For today, expect a test of 18,200 in Nifty 50 as aggregate indices coupled with short coverage to see a positive start to the day.

Asian markets traded in the green as indices react positively to the weaker US dollar and the outlook for a better earnings season. The Taiwan and South Korean markets are also expected to see greener as supply chain disruptions are resolved in semiconductor markets, with production set to increase sharply in the coming months.

Overnight on Wall Street, US stocks experience huge intraday swings, with the Dow Jones closing at daily highs up over 180 points before falling over 300 in intraday trading. The Nasdaq rebounds after falling 8 days to close over 210 points as tech stocks rebound ahead of earnings season this week. US bond yields close near 1.74% while the US dollar index sees first signs of weakness closing at a three-month low near 95.60.

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