Stocks up almost 1% on robust credit, tax data

Going forward, markets are likely to sustain the current momentum, as stock-specific action will pick up with the onset of the Q1FY24 earning season, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

In this hype, many retail investors are rushing into the market. They may be influenced by the euphoria of Nifty at all-time highs and fear of missing out. However, in this rush to participate and benefit from the markets they are ignoring the risks associated with it. Risk is inseparable from the world of investing.

The coming week should be interesting, as significant economic data releases and critical new flows are expected to provide direction to the market. Among the domestic data sets, India's quarterly GDP figures, monthly auto numbers, and exit polls from the recently concluded state elections are likely to weigh on markets. On the international front, US GDP data and OPEC's output policy decision are two triggers that investors will be watching closely.

From the Sensex pack, HCL Tech, Infosys and TCS were the top gainers, rising 1-2%. Titan, Reliance, Sun Pharma, Wipro and Axis Bank also opened with gains. Meanwhile, only Tata Steel opened with the cuts.

The dollar index rose in Asia, and has now recovered a large part of its losses suffered post the US jobs data. Asian currencies were down between 0.2% and 0.6%, with the offshore Chinese yuan slipping to 7.2250 to the dollar, Reuters reported.

The Indian rupee rose for a third consecutive session on Wednesday as the dollar continued its slide ahead of U.S. inflation data that could potentially support bets of the Federal Reserve not hiking interest rates beyond July this year.

The S&P BSE Sensex fell as much as 787 points to 72,308 at around 1:10 pm; the Nifty50 also witnessed a similar decline.

With the market in an oversold territory, we could see a quick pullback rally if the index trades above 17500. Above which, the pullback formation is likely to continue till 17600-17750. On the flip side, as long as the index is trading below 17500, the weak sentiment will continue. Below which, the index could retest the level of the 200-day SMA or 17400.

The S&P BSE Sensex rose 448.96 points to 59,411.08, while the NSE Nifty 50 was up 0.85 per cent to 17,450.90. Broader markets also rose sharply, with volatility dipping significantly.

The local unit has touched a high of at least 81.925 in the intraday trade. This would be its best performance since February 2nd. At the latest level, the current week's gains come to around 1.2% in the rupe