New Delhi [India], September 16 (ANI): The Indian stock markets opened on a positive note on Wednesday, recovering from yesterday's sharp sell-off, with Sensex surging over 300 points and Nifty above 23,200 ahead of the Fed's September 15-16 policy meeting. The benchmark indices opened with a gap-up despite elevated US bond yields and high crude prices. 

Sensex opened at 74,249.31 against the previous close of 74,003.82 and was trading at around 74,388.37, up 384.55 points or 0.52 per cent. Likewise, Nifty opened at 23,201.60 against the previous close of 23,118.60 and was trading at around 23,244.30, up 125.70 points or 0.54 per cent.

On NSE, Nestle, ITC, SBIN, M&M, Reliance, Hindustan Unilever, Asian Paints, HCL Tech, Power Grid, Kotak Bank, HDFC Life, Trent, BEL, Hindalco, Trent, among others traded in the green during the early morning session. Wipro, NTPC, ONGC, among others, traded in the red. 

On BSE, ITC, M&M, BEL, Trent, Reliance, Hindustan Unilever, Tech Mahindra, LT, ICICI Bank, among others traded in the green, while HDFC Bank, Indi Go, Tata Steel, among others, traded in the red.

Shares of payment companies gained following the introduction of the latest MDR framework, with Paytm shares trading higher at 1767.05 per share, up 35.95 points or 2.08 per cent and Mobikwik shares at 203.90 apiece, up 1.95 points or 0.97 per cent at around 9:29 AM. 

Sectorally, most indices traded in the green; however, Nifty Realty, Consumer Durables and Healthcare were under pressure. Also, most broad market indices traded in the green at the time of reporting. 

In the commodity market, Brent crude was trading at around USD 108.06 per barrel and crude oil was at around USD 104.69 per barrel, at the time of reporting. Likewise, gold was at around USD 4,326.65. 

Market analyst Vipin Dixena noted, "The market has opened on a recovery note after yesterday's sharp sell-off. The bounce is encouraging, but I would not interpret it as a trend reversal yet because yesterday's selling was broad and the external environment remains challenging."

"The bigger issue I am watching is whether this recovery can sustain despite Brent crude remaining above USD 108, elevated US bond yields and continued FII selling," he noted, adding, "Technically, 23,000 is now the crucial support for Nifty. If the index sustains above 23,200 and starts reclaiming 23,300-23,400, the current rebound can extend further. But a failure to hold 23,000 would keep the broader downside structure intact. For me, today's price action around 23,200-23,300 is more important than the opening recovery itself."

VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited noted, "The weak market construct continues with elevated US bond yields and high crude prices contributing significantly to the weakness. So long as these two crucial macros remain high, it would be unrealistic to expect a strong rebound in the market. FIIs have been sellers in the market during the last 5 days and with the US 10-year yield at 5%, they are likely to sell at every small rally in the market. 

As per Vijayakumar, the Fed is most likely to raise interest rates by 25 bp. However, this is unlikely to impact the market since it is already discounted by the market. More market-moving will be the Fed commentary on the evolving macro-outlook and the likely rate action going forward. 

"Even though the market is weak, there are stock-specific opportunities in this market. Appointment of a new MD and CEO for HDFC Bank is expected soon and the new MDR norms for digital transactions introduced by the NPCI are significant events that can influence the markets," he said. (ANI)