India's benchmark stock indices reversed early losses to trade higher for the third straight session on Wednesday, led by gains in financial stocks.
At 11:46 a.m., the 50-stock NSE Nifty was trading 26 points, or 0.11%, higher at 25,070, and the 30-stock BSE Sensex was up 94 points, or 0.12%, at 82,002. Both the Nifty and the Sensex fell as much as 0.24% during early trade on Wednesday.
Banking stocks, which are attractively valued, are good 'buys' now for medium- to long-term investors, according to VK Vijayakumar, chief investment strategist at Geojit Financial Services. The investor preference of defensives like Pharma and FMCG is likely to continue, he said.
"Industries using crude and crude-derived inputs as raw materials, like paints, adhesives, tyres and aviation, will be on a strong wicket," added Vijayakumar.
However, losses in the automobile sector led by Tata Motors Ltd. limited the gains in the indices.
Shares of Tata Motors plunged more than 4% on Wednesday after UBS maintained its target price, which implies a 25% downside. This is on the expectation that fiscal 2026 could be weak for the automaker on multiple headwinds.
The domestic stocks were mixed while most Asian stocks fell on Wednesday, taking mixed cues from Wall Street ahead of US inflation data and presidential debate.
Shares of Bajaj Auto Ltd., Bharti Airtel Ltd., ITC Ltd., Asian Paints Ltd., and Hindustan Unilever Ltd. were contributing to the gain on the Nifty 50.
While those of Tata Motors Ltd., Oil and Gas Corp. Ltd., ICIC Bank Ltd., Hindalco Industries Ltd., and Bharat Petroleum Corp. were weighing on the index.
On NSE, six of the 12 sectors declined, with Nifty Oil and Gas and Auto slipping the most during the session. The Nifty FMCG and Pharma rose the most on Wednesday.
Broader markets outperformed the benchmark indices, with the Midcap and Smallcap were trading 0.22% and 0.25% higher, respectively, through midday on Wednesday.
On BSE, six of the 20 sectors declined, with BSE Oil and Gas and Energy leading the fall.
Market breadth was skewed in favour of the buyers. Around 2,052 stocks rose, 1,714 stocks declined, and 130 stocks remained unchanged on the BSE.
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