The Indian stock markets displayed a positive trend on Wednesday amid high volatility. The BSE Sensex rose over 450 points to trade above the 70,800 level while the Nifty 50 index surpassed 21,350 in morning deals.
The markets opened on a strong note tracking largely positive Asian cues. However, choppiness crept in later as investors turned cautious after the latest earnings reports from Axis Bank and Asian Paints disappointed.
Axis Bank shares fell nearly 2% after the private lender reported a muted 4% rise in net profit for the December quarter. Asian Paints also dropped over 1% as its net profit declined 18% due to higher expenses.
However, gains in banking and metal stocks helped the indices trim most of the losses. IndusInd Bank, SBI, Power Grid, HCL Tech, Hindustan Unilever, and Tata Steel were prominent gainers.
Analysts said the markets may remain volatile in the near term amid the ongoing Q3 earnings season. While the underlying trend remains positive, investors need to be stock-specific in their approach.
“The bias remains positive as long as Nifty trades above the 21,000 mark. Traders should maintain extra caution in stock selection and risk management,” said Gaurav Ratnaparkhi of Sharekhan.
The rupee, meanwhile, appreciated 26 paise to trade at 81.58 against the US dollar in the early session.
