After a continued and consistent decline in the recent sessions, India’s key indices — S&P BSE Sensex and NSE Nifty50 — rose in early trade on Wednesday possibly due to value buying.
The recent fall was led by continued selling by foreign institutional investors amid geo-strategic tensions between Ukraine and Russia, said analysts.
“The major impact of the Ukraine crisis in India is the implications on crude at $97. If crude sustains around these high levels, inflation in India is sure to go up, forcing the RBI to revise its FY 23 inflation target upwards and signal withdrawal from the accommodative monetary stance. This would be negative for the growth and earnings perspective,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“Higher crude prices are negative for tyre, paints and FMCG segments. Financials, particularly high quality banks, have valuation comfort. IT is likely to exhibit resilience thanks to good earnings visibility.”
At 10.09 a.m., Sensex traded at 57,492 points, up 0.3 per cent or 192 points, whereas Nifty traded 17,150 points, up 0.3 per cent or 58 points.
On the stocks front, Kotak Mahindra Bank, Indusind Bank, Asian Paints, Titan, and Adani Ports were the top five gainers among the Nifty 50 companies during the early trade, up 2.7 per cent, 1.7 per cent, 1.4 per cent, 1.4 per cent, and 1.3 per cent, respectively.
ONGC, Divi’s Labs, Nestle India, Hindustan Unilever, and ICICI Bank, on the other hand were the top five losers, data showed.