Indian stock market witnessed a solid recovery on Wednesday, with the BSE Sensex gaining more than 550 points and closing above 76,400. The NSE Nifty50 also posted a notable rise, ending the session above 23,150, up by nearly 131 points.
The rally was led by IT stocks, with major players like Infosys, TCS, Tech Mahindra, Sun Pharma, and Bajaj Finserv driving the gains on the Sensex. Despite the positive momentum in the benchmark indices, the broader market indices, such as Nifty Smallcap 100 and Nifty Smallcap 250, struggled. Both indices saw a decline of over 1.5 percent, indicating weakness in mid and small-cap stocks.
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The sectoral performance was mixed, with the Nifty Realty index facing significant losses. It plunged by 4.56 percent, making it the worst performer of the day. On the other hand, the Nifty IT index surged over 2 percent, reflecting positive investor sentiment in the technology sector.
One of the key drivers behind the market rally was the announcement by US President Donald Trump. He revealed a $500 billion investment plan for AI infrastructure, which sparked optimism in global tech stocks. This news boosted investor confidence, particularly in IT stocks, which dominated the day’s gains.
Vinod Nair, Head of Research at Geojit Financial Services, explained that the recovery in benchmark indices followed better-than-expected results from a major private bank. He noted that while the IT sector rebounded, mid and small-cap stocks continued to face pressure due to valuation concerns.
The Indian rupee appreciated by 25 paise, closing at 86.33 against the US dollar, reflecting the positive domestic equity market sentiment. The US dollar index also softened, supporting the rupee’s rise. In Asia, Tokyo and Seoul ended the day higher, while Hong Kong and Shanghai closed in the red. US markets had a positive session on Tuesday, contributing to the global risk-on sentiment.
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Global oil prices saw a slight increase, with Brent crude rising 0.49 percent to settle at $79.68 per barrel. Meanwhile, foreign institutional investors (FIIs) continued to be net sellers in the Indian equity markets, offloading shares worth Rs 5,920 crore on Tuesday.
The Indian markets are expected to maintain their cautious optimism, with IT stocks likely to continue their strong performance. However, the weakness in mid and small-cap stocks suggests that investors may be more selective in their approach moving forward. Additionally, global cues, including oil prices and FII activity, will play a crucial role in shaping market sentiment in the coming
