India’s benchmark indices, the Sensex and Nifty 50, are expected to open higher on Wednesday, extending the gains from the previous session that were driven by optimism around the India–EU trade agreement. Asian markets traded mixed, while US equities mostly ended in positive territory, with the S&P 500 touching a record intraday high.
Gift Nifty was trading near the 25,445 level, around 62 points above the previous Nifty futures close, indicating a firm start for domestic markets. On Tuesday, both Sensex and Nifty 50 ended higher after a volatile session, supported by strong buying in banking and metal stocks, positive global cues, and upbeat sentiment surrounding the proposed free trade agreement.
However, subdued corporate earnings growth and continued foreign investor selling capped the upside, traders noted. According to Jay Thakkar of ICICI Securities, Nifty 50 rebounded from key support and closed above 25,150, signalling short-term strength. Banking, financials, PSU banks, and metals led the rally, with no signs of reversal.
Thakkar recommends Union Bank and BEL February futures, citing consolidation breakouts, strong sector performance, favourable options data, and rising upside potential in both stocks.
