Benchmark indices extended their winning streak on Wednesday, with the Sensex climbing 323.83 points or 0.40 per cent to close at 81,425.15 and the Nifty 50 advancing 104.50 points or 0.42 per cent to end at 24,973.10, driven by renewed optimism over progress in India-US trade negotiations.
The rally was sparked by President Donald Trump’s announcement that tariff talks with India would resume, which Prime Minister Modi responded to positively. “Renewed optimism around ongoing trade negotiations between India and the US lifted market sentiment,” said Vinod Nair, Head of Research at Geojit Investments Limited. “Anticipation of stronger H2FY26 earnings, driven by GST rationalisation and the benefits of monetary easing, is providing resilience to valuations.”
FIIs turn buyers, boost investor wealth by ₹2 lakh cr
Foreign institutional investors turned net buyers after eleven consecutive trading sessions, with inflows exceeding ₹2,000 crore on Tuesday, further boosting investor confidence. The positive sentiment helped investors’ wealth swell by over ₹2 lakh crore in a single day, as the market capitalisation of BSE-listed firms climbed to ₹456 lakh crore from ₹453.8 lakh crore in the previous session.
Among the top gainers on the Nifty 50, Bharat Electronics Limited (BEL) led the charge, surging 4.58 per cent to ₹389.00, followed by Wipro, which gained 2.63 per cent to ₹255.71. HCL Technologies advanced 2.60 per cent to ₹1,464.20, while HDFC Life Insurance gained 2.21 per cent to ₹777.90. Bajaj Finance rounded out the top five gainers, rising 2.01 per cent to ₹967.50.
Auto stocks drag; M&M, Bajaj Auto fall
On the losing side, Mahindra & Mahindra was the biggest laggard, falling 2.36 per cent to ₹3,609.00. Bajaj Auto declined 1.60 per cent to ₹9,232.50, while Maruti Suzuki dropped 1.50 per cent to ₹15,134.00. Hero MotoCorp fell 1.45 per cent to ₹5,345.00, and Eicher Motors slipped 0.81 per cent to ₹6,818.50.
IT index shines on Fed rate cut hopes
Sectorally, the IT index was the star performer, extending its rally by 2.5 per cent on hopes of a potential Federal Reserve rate cut next week and revival in technology spending. “The IT index extended its outperformance on hopes of a potential Fed rate cut next week and a revival in technology spending,” Nair added. PSU Banks and Realty sectors also outperformed with gains of 1-3 per cent, while the auto sector witnessed profit-booking after several sessions of outperformance, declining over 1 per cent.
Midcaps, smallcaps outperform frontline indices
The broader markets outshone frontline indices, with the Nifty Midcap 100 rising 0.93 per cent and the Nifty Smallcap 100 gaining 0.73 per cent. Market breadth remained healthy with 2,348 advances against 1,785 declines on the BSE. A total of 118 stocks hit 52-week highs while 53 touched 52-week lows. The Nifty Bank index gained 0.59 per cent to close at 54,536.00.
Profit-booking halts Nifty at 25,000 mark
However, the indices showed signs of fatigue near key resistance levels. “Profit-booking pressure on Wednesday kept frontline indices slipping from intraday highs as investors booked gains after a decent rally,” said Hariprasad K, Research Analyst and Founder of Livelong Wealth. The Nifty briefly reclaimed the psychological 25,000 mark but failed to sustain higher levels, forming a Doji candle pattern indicating indecision among market participants.
Derivatives show resistance at 25,000 strike
On the derivatives front, the 25,000 strike saw aggressive put writing initially before bears returned in the second half. “The Nifty 50 extended its winning streak but showed signs of fatigue near the 25,000 mark, where heavy Call OI capped further upside,” said Ponmudi R, CEO of Enrich Money.
Rupee gains on FII inflows, weak dollar
The rupee traded positive by 0.07 per cent at 88.08 against the dollar, aided by FII buying interest and continued weakness in the dollar index below 98. “Ongoing trade deal talks with the US also provided stability, while weak crude prices added minor support,” said Jateen Trivedi, VP Research Analyst at LKP Securities. “The near-term outlook suggests rupee could gradually gain lost ground towards 87.75, with 88.25 acting as a reversal point on the upside.”
Gold holds firm on tariff uncertainty, de-dollarisation
Gold prices stayed positive with 0.20 per cent gains at ₹1,09,225 on MCX, while COMEX gold held firm at $3,654. “Despite being in overbought territory, gold continues to command a premium on tariff uncertainties and the de-dollarisation theme,” Trivedi noted.
Nifty technicals indicate support at 24,750
From a technical perspective, the outlook remains constructive. “Nifty gained more than 100 points to close at 24,979, extending its recovery as the index held above the 21EMA,” said Rupak De, Senior Technical Analyst at LKP Securities. “Going ahead, sustaining above 24,820–24,750 may lead the index towards 25,160 and higher levels.”
Outlook: IT, banking key for next leg higher
Looking ahead, market participants will closely watch US inflation data and the Federal Reserve’s policy decision next week. “Markets are gradually inching higher amid favorable cues; however, sustained participation from the two key sectors—IT and banking—will be essential for the Nifty to move towards the 25,250–25,400 zone,” said Ajit Mishra, SVP Research at Religare Broking. The indices are expected to remain in consolidation mode with stock-specific action likely to drive market movements in the near term.