Domestic benchmark indices Sensex and Nifty opened in the green on Wednesday on positive global cues. The resurfacing of truce talks between the US and Iran pulled crude oil prices lower at $108 per barrel. Investors will watch key Q4 earnings announcements today.

Sensex rose 483 points to 77,501 and Nifty gained 149 points to 24,182 in early deals today.  

Among Sensex constituents, M&M, IndiGo, Bajaj Finance and Bajaj Finserv  rose up to 2.48% while L&T, HUL, PowerGrid, ITC and NTPC dropped up to 3.60%, respectively.

Large caps to outperform

VK Vijayakumar, Chief Investment Strategist, Geojit Investments said, " Investors have to be mindful about present market valuations. Nifty is now trading around 20 times TTM earnings while Nifty Midcap and Nifty Smallcap indexes are trading at 35 times and 30 times respectively. Clearly valuation comfort is in largecaps. High valuation in the broader market can be justified only in the case of stocks with high growth potential. In the short run, this valuation dichotomy may sustain but not in the long run. When the AI trade ends and FIIs stop selling/ start buying in India, large caps will outperform."

Sentiment cautiously bullish 

Rajesh Palviya, Head of Research, Axis Direct said, "Technically, the market sentiment is cautiously bullish, but a sustained daily close above 24,250 is needed to extend the rally towards 24350-24450. If 23,900 is not held, the index could test the 23,800–23,700 zone."

Previous session

Sensex declined 251.61 points, or 0.33 per cent, to settle at 77,017.79, while the Nifty fell 86.50 points, or 0.36 per cent, to close at 24,032.80.