Mid-market update: Bulls make a strong comeback on D-Street, India VIX cools off from 18-month high, broader markets outperform

The Indian market after a wobbly start slipped below the prior trading session low on Wednesday. However, as the day progressed the frontline indices pared their losses and made a strong comeback. NSE NIFTY 50 index is trading up by 0.11% above the 22,300 mark and the 30-share S&P BSE SENSEX gained marginally by 0.07% above the 73,500 mark. The Nifty 50 index filled the opening upside gap area of April 22, 2024, and from there surged over 120 points. Bank Nifty index also recovered from the lower levels, but it is still trading with losses of 0.41% and below its 20-DMA.

India VIX has eased from the 18-month high and has slipped below the 17-mark, which indicates the fear is subsidising.

Sector-wise, the majority of the sectors were seen trading in green led by Nifty PSU Bank (+1.78%), Nifty Energy (+1.58%) and Nifty Metal (+1.4%). On the other hand, Nifty Bank (-0.44%), Nifty Financial Service (-0.36%), Nifty IT (-0.17%) and Nifty Pharma (-0.16%), were seen trading in the red.

The talking point of Wednesday's session is the comeback made by the broader market indices. Nifty Midcap 100 and Smallcap 100 index have added 0.40% and 0.88%, respectively, thereby outperforming the frontline indices. With this outperformance, the market breadth has inclined in favour of advances with 1,385 stocks on NSE advancing and 694 stocks seen declining.

The Dow Jones Future at 12:15 PM was seen trading flat at the 39,023 mark.

Now, let's move to the top three stocks which are seeing action on Wednesday.

Shares of Sonata Software witnessed a sharp fall of over 14% today. As a result, the stock has slipped to a 7-month low. The fall in the stock price was mainly due to the company reporting a sequential fall in its net profit for the quarter ending on March 31, 2024. The shares of Sonata Software have tumbled more than 25% in calendar year 2024 so far.

The stock price of REC jumped over 6% on Wednesday and currently, it is trading near the day’s high. The stock has seen a strong bounce back after its massive fall in the last three trading sessions. It made a comeback amid clarification from the company related to new RBI draft guidelines. The company said that RBI’s new draft guidelines will not impact its profitability, book value or net worth. As a result, all the uncertainty around the RBI’s draft guidelines' impact on the stock has been put to rest.