Nifty and Sensex gear up for a positive start on Wednesday – Crypto News – Crypto News
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Nifty and Sensex gear up for a positive start on Wednesday – Crypto News

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  • India’s Nifty and Sensex look to open in the green on Wednesday after the Tuesday turnaround.
  • Nifty and Sensex cheered the upswing in IT and auto sector stocks on Tuesday.
  • Wednesday’s US GDP revision eyed ahead of Thursday’s US PCE inflation, India’s Q3 GDP data.

The Sensex 30 and Nifty 50, India’s key benchmark indices, are set to open on the right side on Wednesday, having witnessed a Tuesday turnaround on the back of a rebound in IT and auto sector stocks.

Asian markets are looking to extend the previous recovery, led by gains in Chinese stocks. Gift Nifty futures rise 0.20% so far, suggesting the upbeat open on Nifty and Sensex.

Indian traders, however, remained jittery ahead of India’s third-quarter Gross Domestic Product (GDP) data and the expiry of monthly derivatives contracts due later this week. Also, of note remains the top-tier US economic news, including the second estimate of the GDP report on Wednesday.

On Tuesday, the National Stock Exchange (NSE) Nifty 50 and the Bombay Stock Exchange (BSE) Sensex 30 gained roughly 0.35% on the day to close at 22,193.80 and 73,066.91 respectively.

Stock market news

  • The rebound in the auto and IT sector stocks aided the recovery in Nifty and Sensex. US stock futures flipped to gains, at the press time.
  • The top performers on Nifty were TCS, Tata Motors, Powergrid, IndusInd Bank and Sunpharma. Meanwhile, the main losers included Divislab, SBI Bank, Bajaj FinServ, Bajaj Finance and Heromoto Corp.
  • Key corporate news: Tata Consultancy Services (TCS) jumped 2.5% after UBS upgraded the stock to “buy”.
  • The National Company Law Tribunal (NCLT) approved the Hinduja Group firm’s resolution plan for Reliance Capital.
  • Paytm’s founder and chief executive officer Vijay Shekhar Sharma quit the payments bank board in a major shakeup. Paytm share price dips after rallying 5%.
  • Union Bank of India raised 30 billion rupees, under QIP, at an issue price of 135.65 rupees.
  • Wipro Company announced a joint 5G private wireless solution with Nokia to help enterprises scale their digital transformation.
  • The US stock markets closed mixed on Tuesday, as markets digested a 6.1% slump in the US Durable Goods Orders data.
  • Wednesday’s US GDP revision and personal spending data will be closely eyed before the key US PCE inflation data and India’s Gross Domestic Product (GDP) data due on Thursday.
  • Markets are currently pricing in just about a 20% chance that the US Federal Reserve (Fed) could begin easing rates in May, much lower than an over 90% chance a month ago, according to the CME FedWatch Tool. For the June meeting, the probability for a rate cut now stands at about 60%, down from 70% seen a few days ago.

Sensex FAQs

The Sensex is a name for one of India’s most closely monitored stock indexes. The term was coined in the 1980s by analyst Deepak Mohoni by mashing the words sensitive and index together. The index plots a weighted average of the share price of 30 of the most established stocks on the Bombay Stock Exchange. Each corporation’s weighting is based on its “free-float capitalization”, or the value of all its shares readily available for trading.

Given it is a composite, the value of the Sensex is first and foremost dependent on the performance of its constituent companies as revealed in their quarterly and annual results. Government policies are another factor. In 2016 the government decided to phase out high value currency notes, for example, and certain companies saw their share price fall as a result. When the government decided to cut corporation tax in 2019, meanwhile, the Sensex gained a boost. Other factors include the level of interest rates set by the Reserve Bank of India, since that dictates the cost of borrowing, climate change, pandemics and natural disasters

The Sensex started life on April 1 1979 at a base level of 100. It reached its highest recorded level so far, at 73,328, on Monday, January 15, 2024 (this is being written in Feb 2024). The Index closed above the 10,000 mark for the first time on February 7, 2006. On March 13, 2014 the Sensex closed higher than Hong Kong’s Hang Seng index to become the major Asian stock index with the highest value. The index’s biggest gain in a single day occurred on April 7, 2020, when it rose 2,476 points; its deepest single-day loss occurred on January 21, 2008, when it plunged 1,408 points due the US subprime crisis.

Major companies within the Sensex include Reliance Industries Ltd, HDFC Bank, Axis Bank, ITC Ltd, Bharti Airtel Ltd, Tata Steel, HCL Technologies, Infosys, State Bank of India, Sun Pharma, Tata Consultancy Services and Tech Mahindra.

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