Markets surged on Wednesday, with the BSE closing 595.19 points or 0.71 per cent higher at 84,466.51, while the NSE gained 180.85 points or 0.70 per cent to settle at 25,875.80, marking the fourth consecutive session of gains. The rally was driven by optimism surrounding progress in US-India trade deal negotiations and exit polls projecting a decisive NDA victory in the Bihar assembly elections.
emerged as the top gainer on the Nifty50, surging 6.58 per cent to close at ₹2,832.00, followed by which jumped 5.00 per cent to ₹2,485.20. gained 3.48 per cent to ₹1,457.00, while rose 2.56 per cent to ₹3,125.10 and advanced 2.49 per cent to ₹782.90. On the losing side, Tata Motors Commercial Vehicles fell 1.49 per cent to ₹330.00, Tata Motors Passenger Vehicles declined 1.30 per cent to ₹402.30, dropped 1.29 per cent to ₹178.70, slipped 1.23 per cent to ₹822.10, and shed 0.91 per cent to ₹423.40.
“Today, the Indian stock market ended on a strong note, with the Sensex jumping by 595 points and the Nifty closing at the 25,875 mark. The rally was supported by optimism around progress in the ongoing US-India trade deal talks, positive global cues including the reopening of the US government, and encouraging exit polls suggesting a decisive NDA victory in the Bihar assembly elections,” said Abhinav Tiwari, Research Analyst at Bonanza.
Broader markets outperformed the benchmarks, with the Nifty Midcap 100 rising 0.79 per cent to 60,902.30 and the Nifty Smallcap 100 gaining 0.82 per cent to 18,250.45. The Nifty Bank closed 0.23 per cent higher at 58,274.65, while the Nifty Financial Services index added 0.21 per cent to 27,337.35. Market breadth remained positive with 2,509 stocks advancing against 1,701 declines on the BSE, where 4,373 stocks were traded. Notably, 135 stocks hit their 52-week highs while 120 touched 52-week lows.
IT stocks led sectoral gains, rallying nearly 2 per cent, while auto, pharma, consumer durables, oil and gas and media stocks also witnessed strong buying. “Indian equities surged on Wednesday, led by IT stocks, as optimism over a potential India-US trade deal and US President Donald Trump’s positive remarks on the need for skilled foreign workers bolstered investor sentiment,” noted Ponmudi R, CEO of Enrich Money.
Vinod Nair, Head of Research at Geojit Investments Limited, added, “Global equities rallied on renewed risk appetite, driven by optimism over the anticipated resolution of the US government shutdown and growing expectations of early Fed cuts amid signs of a cooling US labour market. Indian indices mirrored this strength, with large-cap stocks leading gains, particularly in the auto, IT and pharma sectors.”
The weakened by 0.06 paise to close at 88.62 against the US dollar in a muted session. “Rupee traded weak by 0.06rs at 88.62 in a muted session, remaining confined within a narrow range as traders awaited key economic cues,” said Jateen Trivedi, VP Research Analyst at LKP Securities, who expects the currency to trade between 88.40-88.85.
In commodities, continued its positive momentum, gaining ₹500 to close near ₹1,24,450, supported by firm international prices around $4,100. “Gold traded positive for another session, gaining ₹500 to close near ₹1,24,450, supported by Comex gold holding firm around $4,100. The broader trading range for gold is seen between ₹1,22,500-₹1,26,000,” Trivedi added.
Shrikant Chouhan, Head Equity Research at Kotak Securities, said, “For trend-following traders, 25775/84300 and 20-day SMA or 25700/84000 would act as a key support zone. On the higher side, the market could move up to 26000/84800.”
Looking ahead, analysts expect the positive momentum to continue, supported by progress in trade negotiations and political stability. “The Bihar exit polls projecting a clear NDA win have eased concerns about political uncertainty. Simultaneously, progress in the US-India trade talks, particularly the possibility of tariff reductions and trade expansion to $500 billion by 2030 has reinforced optimism,” Tiwari said. However, market participants will closely monitor the US CPI data this week and India’s October consumer price inflation data for further direction.