Benchmark stock market indices opened flat on Wednesday, reflecting a cautious yet resilient sentiment among investors. Gains in metal and banking stocks were largely offset by weakness in IT sector shares during early trade.
At 9:41 am, theS&P BSE Sensexwas up 19.33 points at 83,470.29, while theNSE Nifty50gained 12.50 points to trade at 25,737.90.
According to Dr. VK Vijayakumar, Chief Investment Strategist atGeojit Investments Limited, better-than-expected Q3 earnings and continued momentum in corporate profit growth are positive factors supporting market resilience. However, volatility in IT stocks may persist due to sector-specific uncertainties.
He noted that institutional investors are unlikely to significantly increase exposure to IT stocks unless valuations turn more attractive. As a result, there may be sectoral churn, with funds shifting away from IT toward segments such as banking and financials, automobiles, telecom, and pharmaceuticals, where earnings visibility remains stronger.
Market experts suggest that this could be an appropriate time for investors to gradually increase exposure to equities. However, Vijayakumar cautioned that rising retail investments in gold and silver ETFs could be risky in the current environment, especially if equity markets continue to show earnings-driven strength.
Foreign Institutional Investors (FIIs) have also shown early signs of adjusting their strategy. In the cash market, FIIs have been net buyers in eight of the last thirteen trading sessions. This shift, combined with improving corporate earnings prospects, is seen as a positive signal for broader market stability.
Overall, while short-term volatility—particularly in IT—may continue, sustained earnings growth and renewed FII participation could provide underlying support to the markets in the coming sessions.
