Stock market indices Sensex and Nifty opened higher on Wednesday, in lines with the expectations of a technical rebound after the Nifty 50 closed at a five-month low in the previous session.
GIFT Nifty futures were trading around 23,218.50 points as of 7:54 am IST, indicating a positive start for the Nifty 50, which closed at 23,118.60 on Tuesday, according to figures in a Reuters report.
Both the Nifty 50 and Sensex are in oversold territory, making a technical bounce possible from current levels. However, the overall trend remains bearish, said Vatsal Bhuva, a technical analyst at LKP Securities.
What’s ahead?
Markets are expected to remain subdued amid elevated crude oil prices, heightened activity in the primary market and ahead of the US Federal Reserve’s rate decision later on Wednesday.
Three IPOs – Hero Motors, SS Retail and Jindal Supreme India – were slated to open for subscription on Wednesday, taking the total number of active IPOs to four.
The benchmarks had opened about 0.8% higher on Tuesday but reversed those gains to end more than 1% lower each.
“Crude oil remains the dominant overhang for domestic markets. Even in the previous session, markets failed to sustain the opening gains, succumbing to broad-based selling as elevated oil and firm Treasury yields weighed on investor sentiment,” Reuters quoted as saying, CEO of Enrich Money.