The Indian stock market witnessed a robust rally on Wednesday, with the benchmark Sensex surging nearly 540 points. The surge was fueled by heavy buying in blue-chip banking and oil stocks, alongside positive global cues following a US-Japan trade deal. Investors cheered the upward momentum as the 30-share BSE Sensex closed at 82,726.64, marking a 0.66% gain. The NSE Nifty wasn’t far behind, climbing 0.63% to settle at 25,219.90.
Leading the charge were banking giants HDFC Bank and ICICI Bank, both hitting their 52-week highs before settling nearly 1% higher. Tata Motors emerged as the top gainer among Sensex stocks, rising 2.51%, while Bharti Airtel, Bajaj Finance, Maruti, and Reliance Industries also contributed to the rally. Reliance Industries, in particular, bounced back after five consecutive days of losses, closing 0.83% higher.
The market’s optimism wasn’t universal, though. Stocks like Hindustan Unilever, UltraTech Cement, and ITC lagged behind, reflecting selective investor sentiment. Sector-wise, telecom, auto, and banking indices led the gains, while realty and FMCG sectors faced declines.
Vinod Nair of Geojit Investments noted the market’s resilience despite mixed Q1 earnings reports. He highlighted the positive impact of global trade developments, including the US-Japan trade agreement and progress on the India-UK FTA, as key drivers of investor confidence. However, he cautioned that elevated valuations and the sustainability of earnings recovery remain critical factors moving forward.
Globally, Asian markets responded positively to the US-Japan trade deal, with Japan’s Nikkei 225 index jumping 3.51%. European markets also traded in the green, mirroring the upbeat sentiment. However, foreign institutional investors (FIIs) continued to offload Indian equities, selling shares worth Rs 3,548 crore, while domestic institutional investors (DIIs) stepped in with purchases worth Rs 5,239 crore.
Amid the rally, the rupee weakened slightly, settling 3 paise lower against the US dollar at 86.41. Meanwhile, Brent crude dipped 0.45% to $68.29 a barrel, signaling cautious optimism in the commodity markets.
The day’s performance underscores the delicate balance between domestic momentum and global influences. As trade negotiations progress and earnings reports unfold, market participants remain watchful for cues that could shape the next phase of the rally.