Markets Open Higher; Pharma, Auto & Banking Stocks See Early Gains

Indian benchmark indices began Wednesday’s trade on a positive note, supported by buying activity in sectors like pharma, auto, PSU banks, and financial services, even as global signals remained mixed.

By 9:35 AM, the Sensex had risen 296.53 points or 0.37 per cent to reach 81,482.97, while the Nifty advanced 88.90 points or 0.36 per cent to 24,772.80.

The Nifty Bank index recorded a gain of 98.55 points or 0.18 per cent at 54,975.90.

However, the Nifty Midcap 100 declined by 154.10 points or 0.27 per cent to 56,028.55, and the Nifty Smallcap 100 dropped 63.65 points or 0.36 per cent to 17,419.35.

Market analysts noted that Indian equities had dropped significantly on Tuesday, partly due to rising COVID-19 cases in Southeast Asian nations such as Singapore and Hong Kong.

Devarsh Vakil, Head of Prime Research at HDFC Securities, stated, “Technically, Nifty closed below its 5-day EMA for the first time since May 8, 2025, suggesting a shift to profit-booking. Support levels lie at 24,494 and 24,378, while resistance is expected in the 24,800-24,900 range.”

He added that Indian markets may continue from where they left off, given the absence of strong global direction.

Among Sensex constituents, Sun Pharma, HDFC Bank, Tech Mahindra, TCS, Nestle India, Maruti Suzuki, ICICI Bank, UltraTech Cement, and Hindustan Unilever were the leading gainers.

On the other hand, Eternal, Kotak Mahindra Bank, IndusInd Bank, and NTPC posted losses.

Global Market Overview

Across Asia, stock markets in China, Hong Kong, Bangkok, Seoul, and Jakarta were trading higher. Japan was the only major market trading in the red.

In the US, the Dow Jones closed at 42,677.24, down 114.83 points or 0.27 per cent.

The S&P 500 ended 23.14 points lower or 0.39 per cent at 5,940.46, while the Nasdaq fell by 72.75 points or 0.38 per cent to 19,142.71.

Experts noted that a sudden rise in uncertainty and risk is weighing on market sentiment.

Foreign Institutional Investors (FIIs) sold Indian equities worth Rs 10,016 crore on Tuesday — a sharp reversal from their recent buying trend.

They pointed to several contributing factors behind this change in FII activity: a US sovereign credit rating downgrade, higher bond yields in the US and Japan, a surge in COVID cases in parts of India, and reports of possible geopolitical tensions involving Israel and Iran.

According to provisional data from the NSE, FIIs offloaded Indian shares worth Rs 10,016.10 crore on 20 May, while Domestic Institutional Investors (DIIs) bought equities worth Rs 6,738.39 crore.

Also Read: Chinese Defence Shares Tumble As Indian Market Surges Post-Operation Sindoor