Opening Bell: Sensex, Nifty continue to rally on strong global, FII sentiments; NALCO, Tata Steel, BoB stocks gain

On account of positive foreign institutional investors (FIIs) sentiments and Fed chair changing its stance from hawkish to dovish, the Indian indices continue to extend its rally on Wednesday early morning trade session. The BSE Sensex rose 176 points to 39,233 levels while the 50-stock Nifty shot up 41 points to 11,754 levels. The BSE index Nifty Bank rose 242 points to 30,598 levels. Reliance Industries rises near half a per cent.

Giving an idea about the expected market trend at the Indian indices Nagaraj Shetti – Senior Technical & Derivative Analyst at HDFC securities told Zee Business online after the market close on Tuesday, "We observe back to back three doji patterns in the last three sessions and today's doji is placed slightly lower to yesterday's doji pattern. Technically, this three formation could be considered as a rare bearish 'tri-star' pattern, which indicates a possibility of top reversal pattern soon in the market." Shetti went on to add that Nifty continued to show upmove with range bound action today and closed the day modestly higher. Though a doji type candlestick pattern was formed today, but not at new swing highs. "Still we need confirmation of reversal by the way of decline from the highs. Hence, long positions need to be careful at the swing highs," said Shetti.

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Banking and finance sector stocks led the bull run on Dalal Street today. Finance major GIC shot up around 3.7 per cent, Maharashtra Scooters shares rose near 2.6 per cent, Stampede Capital counter surge about 4.75 per cent, Tata Investment Corporation stocks rose near 3.15 per cent while Andhra Bank went up near 1.55 per cent.

Yes Bank counter rose 1.25 per cent, Bank of Baroda shares went up near 1.95 per cent, IndusInd Bank scrip added around 0.9 per cent, City Union Bank jump 0.8 per cent while Federal Bank and HDFC bank shares went northward near 0.6 per cent.

Metal sector too witnessed a bull run today. Metal major NALCO shot up near 2 per cent, SAIL went up around 1.77 per cent, Tata Steel was up near 1.65 per cent, JSW Steel shares went up near 1.25 per cent, NMDC counter rose around 1.35 per cent while Vedanta stocks shot up near 1 per cent. 

Asian shares hovered near seven-month highs early on Wednesday as global investors paused for breath after the strong rally seen earlier this week, while oil approached the key $70 per barrel mark. MSCI's broadest index of Asia-Pacific shares outside Japan was up less than 0.1 per cent early in the Asian trading day. The index jumped more than 1 per cent on Monday on data showing a return to growth for Chinese factory activity, while investor sentiment was further bolstered by improvements in US manufacturing and construction spending.

The benchmark inched up to a seven-month high on Tuesday amid a global run of gains that has pushed MSCI's key gauge of global equities to a six-month high. The global index was up less than 0.1 per cent on Wednesday morning, following small gains on Wall Street overnight.

Australian shares were up 0.6 per cent, while Japan's Nikkei 225 index added 0.76 per cent. Hang Seng index jump near 1 per cent, South Korean Kospi index rose around 0.6 per cent, Shanghai index was up near 0.3 per cent.

On Tuesday, the Dow Jones Industrial Average fell 0.3 percent to 26,179.13 points, the S&P 500 was flat and the Nasdaq Composite added 0.25 percent to 7,848.69.