Midday Update: Nifty 50 Gains 0.96%, Sensex Rises Over 700 Points to Day’s High on IT Rally

Market Update at 12:17 PM: India’s benchmark indices, the Nifty 50 and the Sensex, were trading at their day’s high on Wednesday, supported by strong gains in IT and media stocks.

The Nifty 50 was trading 0.96 per cent or 226.30 points higher at 23,825.45, while the Sensex advanced 736.38 points or 0.97 per cent to 76,807.22.

Broader markets outperformed the benchmark indices, with the Nifty MidCap and the Nifty SmallCap indices rising 1.52 per cent and 1.46 per cent, respectively.

On the sectoral front, the Nifty IT index surged over 4 per cent, led by gains in Infosys and Tata Consultancy Services. In contrast, the Nifty Metal index declined 0.83 per cent, emerging as the top losing sector.

Investors remain cautious ahead of the U.S. Federal Reserve’s policy decision, scheduled for release later on Wednesday. The U.S. central Bank is widely expected to keep interest rates unchanged. Market participants will closely track policymakers’ commentary for insights into how the ongoing U.S.-Iran conflict could influence the future rate trajectory.

Market Update at 09:36 AM: India’s benchmark indices, the Nifty 50 and the Sensex, extended their gains in early trade on Wednesday, supported primarily by strength in IT stocks.

As of 9:17 AM, the Nifty 50 was trading higher by 0.54 per cent, or 129.85 points, at 23,714.05. The Sensex rose 0.61 per cent, or 463.82 points, to 76,534.66.

Among the Top Gainers in the Nifty 50 index were InterGlobe Aviation, Tata Consultancy Services, Wipro India, and Shriram Finance, contributing significantly to the upward momentum.

Broader markets outperformed the benchmark indices, indicating broader buying interest. The Nifty MidCap index was trading 0.97 per cent higher, while the Nifty SmallCap index advanced 1 per cent.

On the sectoral front, the Nifty IT and Nifty Auto indices emerged as the top performers. In contrast, the Nifty Metal index declined 0.83 per cent, making it the top losing sector during the session.

Pre-Market Update at 7:48 AM: India’s benchmark indices, the Sensex and Nifty 50, are likely to open on a steady note on Wednesday, supported by positive global cues. However, overall sentiment remains cautious due to the ongoing U.S.–Iran conflict in the Middle East.

Asian markets traded in positive territory, while U.S. equities ended higher overnight. Investors are closely watching the U.S. Federal Reserve’s policy decision and interest rate outlook. The Federal Reserve began its two-day policy meeting on Tuesday, and market participants expect the Federal Open Market Committee, led by Jerome Powell, to keep interest rates unchanged. CME FedWatch data suggests expectations of a single 25-basis-point rate cut later this year, compared to earlier projections of around two cuts before the conflict escalated.

As of 7:25 am, GIFTY Nifty was trading around the 23,650 level, a premium of nearly 68 points over the previous close of Nifty futures, indicating a positive start for Indian markets.

Most Asian markets traded higher on Wednesday, tracking gains on Wall Street. Japan’s Nikkei 225 rose 1.68 per cent and the Topix gained 1.66 per cent. South Korea’s Kospi surged 3.34 per cent, while the Kosdaq advanced 1.7 per cent. However, Hong Kong’s Hang Seng index traded marginally lower, down 0.11 per cent.

Geopolitical tensions remain a key concern. The U.S. and Israel continued strikes, while Iran confirmed the death of its national security chief, Ali Larijani. In response, Iran targeted energy infrastructure across the Persian Gulf, and shipping activity through the Strait of Hormuz remained nearly stalled.

On the macro front, Japan’s exports rose 4.2 per cent year-on-year in February, beating expectations of 1.6 per cent. Imports increased 10.2 per cent, slightly below the forecast of 11.5 per cent. The country reported a trade surplus of 57.3 billion yen (USD 360.65 million), against expectations of a deficit of 483.2 billion yen.

The U.S. dollar traded slightly higher, with the dollar index at 99.56 after a two-day decline.

From a derivatives perspective, the Put-Call Ratio stands at 0.99. On the put side, the 23,500 strike saw meaningful open interest addition, while the 23,000 strike holds significant open interest, making it a key support level for the weekly expiry. On the call side, fresh additions were observed at the 23,600 and 24,000 strikes, indicating resistance at these levels. Call writers appear active at these psychological levels, suggesting that any short-term rally may face selling pressure.

Technically, the Nifty 50 has immediate support at 23,290, while resistance is placed at 23,700.

In the derivatives segment, Sammaan Capital and SAIL remain under the F&O ban for March 18.

Institutional activity showed mixed trends on March 17. Foreign Institutional Investors were net sellers, offloading equities worth Rs 4,741.22 crore, while Domestic Institutional Investors were net buyers, purchasing shares worth Rs 5,225.32 crore. FIIs have remained net sellers for 13 consecutive sessions.

On Tuesday, Indian markets extended gains for the second straight session. The Sensex rose 567.99 points, or 0.75 per cent, to close at 76,070.84, while the Nifty 50 gained 172.35 points, or 0.74 per cent, to settle at 23,581.15.

U.S. markets ended higher on Tuesday as the Federal Reserve meeting began, despite concerns over rising oil prices and geopolitical tensions. The Dow Jones Industrial Average gained 0.10 per cent to 46,993.26, the S&P 500 rose 0.25 per cent to 6,716.09, and the Nasdaq climbed 0.47 per cent to 22,479.53.

In commodities, gold prices remained steady ahead of the Federal Reserve decision, with spot gold at USD 5,003.77 per ounce. Silver prices slipped 0.2 per cent to USD 79.19 per ounce.

Crude oil prices declined after data indicated a rise in U.S. crude inventories. Brent crude fell 0.6 per cent to USD 99.91 per barrel, while West Texas Intermediate crude dropped 0.85 per cent to USD 94.17 per barrel.

Disclaimer: The article is for informational purposes only and not investment advice.