Benchmark stock market indices closed higher on Wednesday, retaining the rally it witnessed in the afternoon session, buoyed by IT stocks over positive global sentiment, particularly in the US.
The S&P BSE Sensex gained 595.19 points to close at 84,466.51, while the NSE Nifty50 added 180.85 points to end at 25,875.80.
Vinod Nair, Head of Research, Geojit Investments Limited, said that global equities rallied on renewed risk appetite, driven by optimism over the anticipated resolution of the U.S. government shutdown and growing expectations of early Fed cuts amid signs of a cooling U.S. labour market.
“Emerging markets outperformed, reflecting the improvement in global sentiment. Indian indices mirrored this strength, with large-cap stocks leading gains, particularly in the auto, IT, and pharma sectors. Supportive domestic macro fundamentals—including easing CPI and WPI inflation, a strong GDP outlook, and healthy H2 earnings expectations—continue to underpin positive market momentum,” he added.
Asian Paints topped the list of gainers with a strong rise of 4.46%, followed by Tech Mahindra, which jumped 3.34%. Tata Consultancy Services advanced 2.73%, while Bajaj Finserv gained 2.42%. Adani Ports also added 2.14%, rounding off the top five gainers of the day.
However, a few stocks saw selling pressure, dragging the broader market slightly lower. Tata Steel was the biggest loser, falling 1.30%, followed by Tata Motors Ventures, which dropped 1.28%. Tech Mahindra Ventures declined 0.79%, while Bharat Electronics slipped 0.64%. Kotak Mahindra Bank also edged down 0.29%.
Rupak De, Senior Technical Analyst at LKP Securities, said that the Nifty index continues its uptrend and looks strong after a gap-up opening.
“On the daily chart, the index has continued to rally higher following a retest of the falling channel breakout. Besides, the index has moved above the 21EMA, confirming the prevailing uptrend. The sentiment might remain positive in the short term, with the index potentially reaching 26,000. On the lower end, immediate support is placed at 25,700,” he added.
