The domestic indices opened firmly in green on Wednesday after closing almost a percent higher in the previous trading session. In yesterday's session, Sensex climbed 560 points to close at 60,655 points and Nifty added 158 points to close at 18,053 points.
The BSE Sensex surpassed the 61,000 mark after opening at 60,716 points, while Nifty-50 opened above the 18,000 mark at 18,074 points and Nifty Bank began trading well above the 42,000 mark at 42,271 points.
As of 1:10 PM, Sensex is trading up almost 400 points or 0.64% to 61,045 points, whereas Nifty-50 is trading at 18,161 points, up 108 points or 0.6% and Nifty bank is up 165 points or 0.4% to trade near the 42,400 mark.
Commenting on a recent market underperformance, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "India's outperformance in 2022 has been temporarily reversed in January 2023, to date, mainly due to FII outflows to other markets, mainly China. Consequently, Hang Seng and Shanghai Composite have appreciated by 9 percent and 4.4 percent respectively YTD while Nifty is down by around 0.3%. India's current underperformance is likely to be temporary since India has the best growth and earnings prospects among large economies."
As a word of caution, he also added, "However, concerns of a global slowdown this year and the possibility of FIIs again turning sellers at higher levels will cap the upside to the market in the near term. From now on Budget expectations also are likely to influence the market trend. IT stocks which have bounced back after the good Q3 results and high-quality banking and capital goods stocks along with RIL have the strength to support the market."
Wall Street ended Tuesday's session on a mixed note after Goldman Sachs reported the worst earning miss in a decade. The Dow shed almost 400 points or 1.14%, weighed down by a 6.5% decline in Goldman's share price. The S&P 500 lost 8 points or 0.2%, while tech-heavy Nasdaq Composite gained 16 points or 0.14%.
