Dalal Street experienced a robust surge on Wednesday, with both Sensex and Nifty rising by close to 1% driven by positive global cues and optimism surrounding trade discussions between India and the United States, boosting investor confidence.
The rally was primarily led by gains in IT, energy, and banking sectors, with broader markets also showing positive movements.
The S&P BSE Sensex surged by 663.63 points to reach 84,534.95, while the NSE Nifty50 jumped by 196.25 points to hit 25,891.20 as of 11:38 am. This surge followed a period of subdued trading, with investors returning to the market amidst a backdrop of reduced global worries and an improvement in risk appetite.
Notably, technology and energy stocks were the major gainers during this rally. Tech Mahindra saw a significant increase of 3.22%, Tata Consultancy Services rose by 2.26%, Adani Ports gained 1.81%, and Reliance Industries was up by 1.76%. Eternal and Trent also recorded early gains of 1.39% and 1.36%, respectively.
However, a few stocks experienced selling pressure, with Tata Motors declining by 0.75%, Tech Mahindra Ventures falling by 0.68%, Bharat Electronics losing 0.73%, Tata Steel dropping 0.55%, and Hindustan Unilever declining by 0.26%.
The spike in the stock market today was attributed to several factors. Firstly, IT stocks saw a significant surge, with the Nifty IT index leading the market rally by gaining nearly 2% during the session. Tech Mahindra, LTIMindtree, and Mphasis were among the top performers in this sector.
Additionally, positive sentiments were fueled by comments made by U.S. President Donald Trump about the progress in finalizing a trade deal between Washington and New Delhi, boosting investor confidence. This news also supported export-oriented sectors and helped counter recent global uncertainties.
Furthermore, the optimism extended from positive trends in major Asian markets, which also contributed to the upward trajectory of Indian equities. The MSCI Emerging Market Asia index saw a 0.5% increase, with strong performances in South Korea and Taiwan. Taiwan’s benchmark index rose over 1%, led by chipmaker TSMC’s gain of 1.4%.
In Singapore, the FTSE Straits Times index hit a new high of 4,556.65, supported by banking stocks. Meanwhile, Manila’s benchmark rose by 1.6%, and Indonesia’s index jumped by 0.4%, driven by gains in top lenders.
The overall optimism surrounding trade talks, positive cues from Asian markets, and the strong performance of IT stocks collectively boosted market sentiment, indicating a potential continuation of the rally in the upcoming sessions.