Benchmark stock market indices closed higher on Wednesday driven by a robust rally in IT stocks following positive developments in the US-India trade deal, which bolstered investor confidence. The S&P BSE Sensex surged by 513.45 points to settle at 85,186.47, while the NSE Nifty50 climbed 142.60 points to finish at 26,052.65.
According to Vinod Nair, Head of Research at Geojit Investments Limited, the indices made a strong recovery on renewed optimism surrounding an India-US trade agreement, supported by optimistic statements from the Union Commerce Minister. Nair highlighted that large-cap stocks led the market gains, particularly in the IT sector, which surged on the back of expectations of a Federal Reserve rate cut, buoyed by soft US labor data and currency advantages. Additionally, PSU banks saw gains on merger-related news and improving fundamentals. Market focus now shifts to tomorrow’s FOMC minutes for further policy cues.
In today’s trading session, the top performers included HCL Technologies, surging by 4.32%, followed by Infosys with a 3.74% jump. Tata Consultancy Services saw a 1.99% increase, while Hindustan Unilever and Sun Pharma added 1.54% and 1.39%, respectively.
However, certain major stocks faced notable selling pressure. Tata Motors Passenger Vehicles recorded the most significant decline, dropping by 2.79%, trailed by Maruti Suzuki with a 1.28% decrease. Adani Ports slipped by 0.83%, and Bajaj Finance and Asian Paints were down by 0.67% and 0.66%, respectively.
Ajit Mishra, SVP of Research at Religare Broking Ltd., expressed optimism amidst the ongoing consolidation phase, anticipating the Nifty to aim for new highs upon a clear breakout above 26,100. Mishra advised participants to maintain a selective approach, focusing on sectors demonstrating strength, particularly large-cap and robust mid-cap companies.
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