In Wednesday’s trading session, the domestic equity benchmark indices, namely Sensex and Nifty 50, closed higher, driven by gains in information technology (IT) and metal stocks.
The market performance was influenced by anticipation surrounding major IT Q3 earnings scheduled for the following day and the release of crucial inflation readings later in the week, which could impact the interest rate outlook.
The 30-share BSE Sensex concluded the day higher by 271.50 points or 0.38%, reaching the level of 71,657.71. Similarly, the Nifty 50 closed at 21,618.70, up by 73.85 points or 0.34%.
The commencement of the earnings season is set for Thursday, with Tata Consultancy Services (TCS) and Infosys unveiling their Q3FY24 results. Analysts emphasize that the commentary from IT management is expected to carry more weight than the actual financial results.
Additionally, the US Consumer Price Index (CPI) for December is also anticipated on the same day. Furthermore, the CPI for India for December is scheduled for release on Friday.
Market analysts note that the current market trend lacks a clear directional bias, and they anticipate that a more defined trend may emerge in the coming days in response to the Q3 results.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, highlighted that the Nifty index exhibited resilience, rebounding strongly from a crucial support level at 21,500. He suggested that if the Nifty manages to close above 21,700-21,750 levels, it might set the stage for a move towards 22,000.
On the broader market front, the Nifty Midcap 100 closed 0.29% higher, while the Nifty SmallCap 100 closed 0.15% lower.
Global markets on the same day presented a mixed picture, with Tokyo’s Nikkei 225 rising 2.1%, aided by significant buying of chipmakers. However, the Shanghai Composite index dropped 0.5%, and the Hong Kong Hang Seng fell 0.6%. Other Asian markets experienced varied performances.
Market sentiment remains influenced by factors such as upcoming earnings releases, inflation data, and global cues. Analysts expect the earnings season to provide insights into the economic scenario, with a keen focus on sectors like auto, capital goods, and cement, while recognizing the potential for lower sequential earnings growth. Overall, the market appears to be seeking fresh triggers for direction, with the anticipation that the upcoming data releases and earnings reports may provide clarity.
