Benchmark stock market indices gained after opening flat on Wednesday even as profit booking continued on Dalal Street.
The S&P BSE Sensex was up 205.79 points at 81,661.19 at 10:10 am, while the NSE Nifty50 rose 69.05 points to trade at 24,926.35.
All the other broader market indices were also trading in positive territory.
High-weightage sectoral indices such as Nifty Bank, Nifty Financial Services and Nifty IT were among the gains in early trade, while Nifty Realty declined.
The top five gainers on the Nifty50 were Asian Paints, NTPC, Hindalco, JSW Steel and Tech Mahindra.
On the other hand, the top losers were Tata Consumer Products, Power Grid, Axis Bank, Tata Motors and IndusInd Bank.
Moreover, market experts said Sebi’s proposal to curb speculation in index derivatives will lead to a more stable rally in the markets.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “Sebi’s crackdown on F&O trade is eminently desirable and can go a long way towards making the ongoing rally healthy and less speculative.”
“The irrational exuberance of the retail investors, particularly the newbies who entered market after the Covid crash, will do more harm than good to the overall market in the long run. Therefore, these regulatory measures are to be welcomed,” he added.
Vijayakumar highlighted that global cues are likely to be supportive on expectations of a rate cut from the US Federal Reserve in September. “The Fed commentary expected tonight is likely to indicate the possibility of rate cut in September,” he said.
Lastly, he added that it is time for investors to take a “long-term call” on the market and moderate their expectations to realistic levels.
“At this juncture in the market safety is important. Chasing super normal returns from the broader market would be a risky game,” Vijayakumar said.