Sensex traded 28 pts lower at 83,418, while the 50-share Nifty moved near the 25,700 mark.
On the 30-share Sensex, newly listed Kwality Wall’s India tanked another 5%, followed by Tech Mahindra, Infosys, Adani Ports, and HDFC Bank. Gainers on the index included BEL, Bajaj Finance, Tata Steel, ITC, and Axis Bank, rising up to 1%.
Expert Views
V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said better-than-expected Q3 results and continued momentum in earnings growth are positive factors that should keep the market resilient.
He noted that volatility in IT stocks may persist amid sector-specific news flow, and added that uncertainty remains high. According to him, large institutional investors are unlikely to significantly increase exposure to IT unless valuations turn more compelling. As a result, there could be portfolio churn away from IT toward sectors such as banking and financials, automobiles, telecom and pharmaceuticals, where earnings visibility is stronger.
Vijayakumar said this is an appropriate time to gradually increase equity exposure. However, he cautioned that rising retail interest in gold and silver ETFs could be risky in the current environment.
He also pointed to early signs of a shift in foreign institutional investor (FII) strategy. FIIs have been net buyers in the cash market in eight of the last 13 trading sessions. He said this trend, along with improving corporate earnings prospects, augurs well for the broader market.
Global Markets
Asian markets traded higher on Wednesday despite lingering concerns over the global artificial intelligence theme, while oil prices remained under pressure after Iran signalled progress in nuclear negotiations with the United States. Meanwhile, the New Zealand dollar weakened after the country’s central bank indicated that monetary policy would need to stay accommodative for an extended period to support the economic recovery.
In Japan, the Nikkei 225 rose 0.93% to 57,090.14, putting it on track to snap a three-day losing streak. Australia’s S&P/ASX 200 gained 0.5%. Markets in mainland China, Hong Kong, Singapore, Taiwan and South Korea were closed for Lunar New Year holidays.
The positive tone in Asia followed a subdued session on Wall Street on Tuesday, as investors continued to assess the outlook for the AI boom. Concerns about potential over-investment in the sector, along with uncertainty over how the emerging technology could disrupt labour markets, have unsettled markets in recent weeks.
Overnight in the U.S., the Dow Jones Industrial Average edged up 0.07% to 49,533.19. The S&P 500 rose 0.10% to 6,843.22, recovering from an initial 0.88% decline earlier in the session, while the Nasdaq Composite gained 0.14% to close at 22,578.38.
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FII/DII Tracker
Foreign portfolio investors or FPIs net bought shares worth Rs 995 crore on Tuesday, February 17. DIIs were buyers of equity worth Rs 187 crore, provisional data from the National Stock Exchange showed.
Crude Impact
Oil prices edged lower on Wednesday as progress in talks between the United States and Iran raised hopes of easing tensions, reducing the risk of supply disruptions from the Middle East producer.
Brent crude futures slipped 3 cents, or 0.04%, to $67.39 a barrel at 0139 GMT, while U.S. West Texas Intermediate (WTI) crude fell 5 cents, or 0.08%, to $62.28. Both benchmarks were hovering near two-week lows.
Rupee vs Dollar
The Indian rupee opened at 90.6450 per U.S. dollar on Wednesday, little changed from its previous close of 90.6725.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)