After Tuesday's T-20 power play, Wednesday's Dalal Street stock market witnessed batting reminiscent of the first hour of the first day of a Test match on England's green 22 yards under overcast skies. This mood persisted throughout the day, with the Sensex, one of the market's key indices, closing at 83,817.69 points with a modest gain of just 78.55 points (+0.094%). Following the same trend, Nifty50 rose nominally by 48.45 points (+0.19%) during the day. While the overall market fared reasonably well, Wednesday was certainly not a good day for Indian IT company shares.
The Nifty IT Index plummeted 5.9% in one fell swoop, a decline last seen on April 7 last year. Heavyweight tech companies, including Wipro, Coforge, TCS, L&T Technology Services, Infosys, and Persistent, all saw their shares fall by approximately 5-6%. Notably, the Nifty IT Index had risen 1.4% after US President Donald Trump announced on Monday night that an India-US trade deal had been reached and that increased tariffs on India would be reduced.
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Experts claim that after AI startup Anthropic announced on Tuesday night (Indian time) the launch of their proprietary AI-based software tools in the market, IT company shares in the US stock market experienced a significant decline. Consequently, the Nasdaq Index dropped 1.43% in one stroke. This shock could have had an even more damaging impact on India's markets on Wednesday.
On Wednesday at Dalal Street, apart from the Nifty IT Index, the Nifty Pharma Index also ended the day in red (-0.34%). However, among the sectors that saw gains, the top two positions were held by Nifty Consumer Durables (+2.6%) and Nifty Oil & Gas (+2.0%). The majority of experts claim that after Tuesday's record-breaking rally, as long as the market's Nifty50 remains at the 25,400-25,000 level, such slow-paced consolidation phases indicate healthy market infrastructure and promising signs for investors.
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When the market gains momentum, it will attempt to cross the 26,000 threshold. If this materialises, there are good prospects for investors' portfolio growth in the coming days. After consecutive days of decline, Gold and Silver ETFs gained approximately 9% on Wednesday, bringing smiles to investors' faces. With spot gold and silver prices also rising 2-3% in international markets on this day, experts claim that unless there are major changes in the geopolitical situation in the coming days, the metal market is more likely to remain buoyant.
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