Indian Stock Market Update: Sensex and Nifty Recover After Initial Decline

In today’s trading session, Indian benchmark indices, Sensex and Nifty, experienced a rocky start but quickly turned the tide, moving into positive territory. As of early trading, the Nifty index is holding above the significant level of 23,300. Asian markets displayed a mixed performance, with Japan’s Nikkei 225 and Topix recording slight gains, while Australia’s S&P/ASX 200 also edged higher. In contrast, South Korea’s Kospi and the tech-focused Kosdaq faced downward pressure.

Key Market Highlights

Focus on IT Stocks
The Indian IT sector is under close watch today, particularly giants like Infosys, Wipro, and TCS, following Accenture‘s recent quarterly earnings report. Accenture, a leader in global IT services, reported a 5% increase in year-on-year revenue for the December-February quarter, totaling $16.7 billion. The company has adjusted its full-year revenue outlook, now predicting growth between 5% and 7%, slightly up from the previous estimate of 4% to 7%.

Japan’s Inflation Eases
In economic news, inflation in Japan has shown signs of cooling down, with the headline rate dropping to 3.7% year-on-year in February, down from a two-year high of 4% in January. Core inflation, excluding fresh food prices, also decreased to 3%, down from 3.2% the previous month.

Steady Gold Prices

Gold prices have remained stable following a surge to an all-time high of $3,057.21 per ounce in the last session. Currently, spot gold is trading at $3,043.89 per ounce, while U.S. gold futures have increased by 0.3%, reaching $3,051.90. In India, gold rates are holding firm, with 24-carat gold priced at Rs 90,067 per 10 grams and 22-carat gold at Rs 83,110 per 10 grams.

Market Performance Today

• Sensex Performance: The Sensex has gained over 500 points, or 0.74%, reaching 76,910.11.
• Nifty Performance: The Nifty index also shows gains, climbing 162.95 points or 0.7% to 23,353.60.

Nifty IT Index Recovery

The Nifty IT index initially opened lower, dipping nearly 2%, but has since rebounded to show a 0.2% increase during intraday trading. Key players in this recovery include MphasiS, which surged by 3.5%, and Coforge, rising by 2%. Other stocks gaining momentum include Persistent Systems, HCL Tech, and Tech Mahindra. However, Infosys and Wipro are currently lagging, down 1.5% and 0.6%, respectively.

Mid and Small Caps Shine

Mid-cap and small-cap stocks have kicked off the trading day with strong performances. The BSE MidCap index rose 423.56 points to 41,783.26, while the BSE SmallCap index jumped 821.49 points to 47,166.08.

Technical Insights

According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the market has successfully surpassed the 50-day simple moving average (SMA) level and the 23,000/75,700 resistance zone, indicating a positive trend. The formation of a bullish candle on the daily chart suggests potential for further upside. He advises day traders to consider buying on dips while being cautious of the market’s resistance levels at 23,300/76,500 and 23,400/76,800.

Crude Oil Market Update

Crude oil prices continue to fluctuate, driven by U.S. sanctions on Iran and production cuts by OPEC+. Recent tensions, including a drone attack in Ukraine, have also contributed to price volatility. Current support levels for crude oil are $67.70-67.00, with resistance noted at $68.90-69.60.

The Indian stock market has shown resilience today, with strong performances across various sectors, particularly IT and mid/small caps. Investors are advised to stay informed and consider strategic buying opportunities as market dynamics evolve.