FIRST TRADE: Sensex adds 201 points, Nifty at 23,107; ICICI Prudential down over 7%

Indian equities in Wednesday's trade tracking positive Asian markets opened higher. At the open, Sensex gained 0.27 per cent or 200.99 at 76,039.35, while the Nifty gained 0.36 per cent or 82.75 at 23,107.4. Meanwhile, broader markets underperformed the headline indices, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices down up to 1 per cent.

Sectorally, Realty, consumer durable, metal and PSU Banks were the top laggards, while FMCG, IT and pharma stocks gained.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "President Trump’s orders and announcements, so far, have been disruptive. He is doing tough talking initially to send the message that more stern measures are in the offing. Trump’s threat to impose 100% tariffs on BRICS if they attempt dedollarization is a repeat of his election campaign rhetoric. It appears that the markets took this threat too seriously.

Nifty is down around 12% from the 2024 September highs.

The correction provides a good opportunity for long-term investors to buy quality stocks, which are now available at fair valuations. The key to success will be patience, he added.

Technical outlook

Anand James, Chief Market Strategist, Geojit Financial Services on the Nifty outlook said, "Though the bearish engulfing candle calls for extension in downtrend, aiming at 22840 initially, the consolidation in the closing hour which was spread across broader markets leaves sufficient room for a recovery push today, either to 23220 or 23430."

Hopes of such upswings would be negated if early trades fail to float above 22940, he added.

Asian markets

Most of the Asian stocks were up in early trade on Wednesday, with technology shares taking the lead following the announcement of a partnership by OpenAI for establishing more AI infra in the US. The key MSCI Asia ex Japan index, meanwhile traded steady, with a positive bias at 571.72.

Nevertheless, China and Hong Kong markets stocks suffered a blow after US President Donald Trump raised the prospect of increased trade tariffs on China as early as February.