EARLY TRADE: Sensex adds 201 points, Nifty at 23,107; ICICI Prudential down more than 7%
Indian shares in the wake of Wednesday’s positive Asian trade markets opened higher. Meanwhile, the Sensex gained 0.27 percent or 200.99 percent to 76,039.35, while the Nifty gained 0.36 percent or 82.75 percent to 23,107.4. Meanwhile, the broader markets underperformed the headline indices, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices down up to 1%.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “President Trump’s orders and announcements, so far, have been disturbing. He is talking tough at first to send a message that tougher measures are coming. Trump’s threat is to impose 100% tariffs on the BRICS if trying to cash out is a repeat of his election campaign speech It appears that the markets took this threat very seriously.
The Nifty is down about 12% from its September 2024 high.
The correction provides a good opportunity for long-term investors to buy quality stocks, which are now available at reasonable valuations. The key to success will be patience, he added.
A technical perspective
Anand James, Chief Market Strategist, Geojit Financial Services on the Nifty said, “While the flaming candle needs an extension of the downtrend, targeting 22840 initially, the closing hour consolidation spread across the broader markets leaves enough room for a recovery push today , either 23220 or 23430.”
Prospects of such a rise will be negated if early trades fail to float above 22940, he added.
Asian markets
Most Asian stocks were higher in trading on Wednesday, with technology stocks leading the way following the announcement of an OpenAI partnership to develop more AI infra in the US. The key MSCI Asia ex Japan index, currently traded stable, with a positive bias at 571.72.
However, shares in the Chinese and Hong Kong markets suffered after US President Donald Trump raised the prospect of an increase in trade tariffs in China in early February.
