Markets staged a powerful comeback on Wednesday, with the surging 320.50 points or 1.24 per cent to close at 26,205.30, decisively reclaiming the 26,000 mark after three sessions of decline. The BSE jumped 1,022.50 points or 1.21 per cent to settle at 85,609.51, in what analysts termed a complete reversal of recent losses.
The rally was broad-based, with all major sectoral indices trading in the green. Metal stocks led the charge, advancing over 2 per cent, followed by oil & gas and energy sectors. Market breadth remained exceptionally strong with 2,800 stocks advancing against 1,371 declines on the BSE, while 111 stocks touched 52-week highs.
Among the top gainers on the Nifty 50, surged 3.69 per cent to ₹1,153, climbed 2.80 per cent to ₹788, rose 2.55 per cent to ₹2,082, gained 2.51 per cent to ₹1,011, and advanced 2.39 per cent to ₹308. The day’s losers were led by , which fell 1.60 per cent to ₹2,127, declined 0.81 per cent to ₹2,313.90, dropped 0.53 per cent to ₹7,180, slipped 0.20 per cent to ₹2,027, and edged down 0.13 per cent to ₹2,872.
Bank Nifty delivered a significant breakout, rising 707.75 points or 1.20 per cent to 59,528.05, marking its highest closing level since October 1. The banking index broke out decisively from a seven-session consolidation range of 58,605–59,440, signalling renewed momentum in the financial sector. The Nifty Mid Cap 100 gained 1.27 per cent while the Nifty Small Cap 100 advanced 1.36 per cent, with the latter reclaiming its crucial 200-day exponential moving average.
“The move beyond 26,000 reflects broad-based participation and not a narrow rally, reflecting an improving risk appetite across key sectors like banking, realty, metals and energy,” said Dr Ravi Singh, Chief Research Officer at Master Capital Services. “The overall sentiment remains positive till Nifty 50 is trading above 25,800-26,000 level.”
Rate cut hopes
The rally drew support from both domestic and global cues. Renewed optimism over a potential rate cut by the US Federal Reserve in December, combined with expectations of a 25-basis-point repo rate cut by the Reserve Bank of India early next month, improved investor sentiment. Additionally, easing crude oil prices—driven by hopes of progress toward peace between Ukraine and Russia—provided further support.
Ajit Mishra of Religare Broking noted that the index has “completely retraced the past three days of decline” and is approaching its record high. “We maintain our positive outlook and recommend continuing a ‘buy-on-dips’ approach unless the index decisively breaks below 25,800,” he said.
In currency markets, , down 0.05 paise, maintaining a sideways trend despite improved risk sentiment in equities. Spot held steady near $4,165 per ounce ahead of US economic data, while WTI crude oil edged up to $58.20 per barrel as doubts emerged over Ukraine-Russia peace prospects.
Technical analysts now see 26,270–26,300 as key resistance for Nifty, with a breakout potentially driving the index toward 26,500 and 26,700. Support has shifted higher to 26,050–26,000, suggesting bulls remain in control as long as these levels hold.