The Indian stock market kicked off Wednesday’s session under pressure, extending the weakness seen earlier this week as selling by foreign investors kept sentiment muted.
But the sluggish start didn’t last long—within minutes, both benchmark indices reversed course, turning positive and mirroring strength across global markets.
The Nifty 50 opened at 25,842.95, slipping 41.85 points (-0.16%), while the BSE Sensex began the day at 84,503.44, down 83.57 points (-0.10%) from its previous close.
Market analysts highlighted that foreign portfolio investors (FPIs) continue to hold significant short positions.
Ajay Bagga, Banking and Market Expert, told ANI, “Indian markets start the December series with FPIs at a net 85 per cent short position; however, they have reduced the magnitude of the shorts. The US-India trade deal remains the one catalyst that could help the Indian markets break through the resistance provided by the 2024 record highs, which have not been breached on a closing basis yet.
The RBI MPC meeting on December 5th will be watched closely for a possible monetary stimulus via a rate cut. Overall, we expect a positive open for the markets, but the key will be follow-through buying which has been lacking in the past few weeks of market consolidation.”
Broader Markets and Sectoral Performance
In early trade, broader indices on the NSE also posted modest gains:
- Nifty 100: +0.28%
- Nifty Midcap: +0.35%
- Nifty Smallcap: +0.45%
Most sectoral indices opened higher as well.
- Nifty Auto: +0.42%
- Nifty Media: +0.46%
- Nifty Metal: +0.86%
- Nifty PSU Bank: +0.53%
- Nifty FMCG: +0.19%
Ponmudi R, CEO of Enrich Money, said technical support remains firm:
“Nifty 50 remains well-supported above its 20-day EMA at 25,841, a trend anchor that has held steady for nearly two months. Despite yesterday’s mild decline to 25,884, the broader structure stays bullish as long as the index holds above 25,841–25,850.
With Gift Nifty indicating a 200+ point gap-up, Nifty is set to open directly above yesterday’s supply zone of 26,000–26,050. If the opening strength sustains, the next resistance zones to watch are 26,130, followed by 26,250–26,300, which remain the key upside targets.”
Global Markets Provide a Boost
Global sentiment played a key role in lifting local markets. Despite a drop in Nvidia, U.S. equities rose on Tuesday amid growing bets on a December rate cut. Weak retail sales and subdued private payroll numbers further strengthened expectations.
