New Delhi/Mumbai: Indian stock markets on Wednesday witnessed an another volatile session on Wednesday, with benchmark indices ending marginally higher amid mixed signals.
After a gap-down start, the Nifty gradually recovered as the session progressed and eventually settled near the day’s high at 23,659.00, up around 0.17%.
Sectoral trends remained mixed, with energy, auto, and realty stocks showing strength, while FMCG and IT counters traded slightly subdued.
Broader markets also witnessed mixed participation, with the midcap index gaining nearly 0.59%, whereas the smallcap index ended largely flat.
The initial weakness in domestic equities was primarily driven by rising global bond yields, elevated crude oil prices, and continued geopolitical uncertainty surrounding the US-Iran conflict, said analysts.
Brent crude continued to hover near the USD 110 per barrel mark, keeping concerns around inflation, India’s current account deficit, and margin pressures intact.
Simultaneously, the rupee weakened to a fresh record low against the US dollar, inching closer to the 97 mark, while persistent foreign institutional outflows further weighed on market sentiment.
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"Investors also remained cautious ahead of key global macroeconomic data releases and continued to track stock-specific earnings reactions, which contributed to heightened volatility across sectors," said Ajit Mishra – SVP, Research, Religare Broking Ltd in his note.
Technically, the Nifty continues to trade below the crucial resistance zone of 23,800–24,000, indicating that the broader undertone remains cautious.
"Index in the daily chart formed a bullish candle with a lower high and lower low highlighting strong pullback after a gap down opening and closed near the day’s high. Index for the third time in the last six sessions has rebounded from near the key support area highlighting buying demand at lower levels, added Bajaj Broking in its market commentary.
However, rotational buying in select heavyweight stocks across sectors is helping limit the downside, with the index finding support in the 23,250–23,400 zone so far.
"Meanwhile, we continue to recommend a sector-specific trading approach with a strong emphasis on overnight risk management," Mishra added.
Major actions during the trading
In a bizarre twist triggered by the viral Modi-Meloni 'Melody' video, the stocks of the Parle Industries hit the upper circuit as social media users rushed to buy the stock, apparently mistaking it for the maker of the iconic Melody toffees.
The frenzy was driven purely by the name similarity, even though Parle Industries has no connection whatsoever with Melody candies or with Parle Products, the company behind the popular confectionery brand.
READ: PM Modi’s Melody gift to Meloni triggers surprise rally in unrelated Parle stock
For context, earlier today at 11:30, Prime Minister of Italy Giorgia Meloni posted a selfie video with Indian Prime Minister Narendra Modi. In the video, PM can be seen standing with a packet of toffee called Melody manufactured by Indian FMCG company Parle Products.
Ola Electric Financial Results
Electric vehicle maker Ola Electric posted its Q4 results. The company reported loss of Rs 500 crore versus Rs 870 crore. The revenue stood at Rs 265 crore compared to Rs 611 crore, down by 57 percent.
Tata Communications Stocks
Stocks of Tata Group's, Tata Communications surged 8% to over four-month high as company announced appointments of its new Managing Director and Chief Executive Officer CEO.
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INR Status
The markets also saw the Indian Rupee (INR) falling to its lifetime low during the trading on Wednesday. The Rupee ended the day at 96.82 per dollar. Indian Rupee has tumbled over 6% since the Iran war began in late February.
Gold Prices
On Wednesday, the Gold prices were steady due to positive developments in the US-Iran war. The spot gold rate remained unchanged at USD 4,480.29 per ounce.
Ends.
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