Daijiworld Media Network - Mumbai
Mumbai, Nov 6: Indian benchmark indices opened higher on Wednesday, buoyed by strong global cues, with FMCG and IT stocks leading the early rally. However, weakness in metal counters limited overall gains.
In early trade, the BSE Sensex climbed 365.42 points or 0.44 percent to 83,824.57, while the NSE Nifty 50 advanced 73.15 points or 0.29 percent to 25,670.80. Market breadth remained balanced, with 1,424 stocks advancing against 1,403 declines and 216 remaining unchanged.
The broader markets showed mixed trends — midcap stocks held steady with a slight upward bias, while smallcaps slipped marginally, reflecting persistent volatility in the secondary space. Meanwhile, India VIX, the volatility gauge, eased slightly, hinting at improved investor sentiment.
On the sectoral front, auto stocks extended gains, supported by robust quarterly earnings from Mahindra & Mahindra (M&M). The automaker reported an 18 percent year-on-year rise in standalone net profit for Q2 FY26, driven by healthy growth in tractor and light commercial vehicle sales.
FMCG shares also regained momentum after a four-day slide. Britannia Industries led the rally, posting a 23 percent year-on-year surge in net profit, surpassing market expectations. Other heavyweights such as ITC, Hindustan Unilever (HUL), Radico Khaitan, and Nestlé India also traded higher.
In contrast, the Nifty Metal index extended its losses for a second straight session, weighed down by Hindalco Industries. Its US-based subsidiary Novelis posted weaker-than-expected results, with shipments dipping slightly despite a 10 percent rise in sales to $4.7 billion. The subdued performance prompted several brokerage downgrades.
Looking ahead, analysts expect market movements to remain stock-specific as corporate earnings continue to flow in.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that global cues, particularly developments in the US Supreme Court over the Trump tariff case, could influence sentiment. “If the ruling goes against the tariffs, emerging markets like India may see renewed foreign inflows,” he noted.
However, Vijayakumar cautioned that persistent foreign institutional investor (FII) selling — totalling over Rs 15,000 crore in the past five sessions — and short build-ups in derivatives could weigh on near-term momentum.