Tracking gains in other Asian equity markets, domestic benchmark indices rose by up to 0.66% on Wednesday, extending gains for the second consecutive session. The announcement of the India–EU trade deal on Tuesday boosted investor sentiment, while short-covering and renewed buying interest across sectors added to the positive momentum.
After a volatile session, the Sensex ended at 82,344.68, surging 487.20 points, or 0.60%. The Nifty jumped 167.35 points, or 0.66%, to close at 25,342.75. On Tuesday, the Sensex and Nifty had gained 0.39% and 0.51%, respectively. India VIX Index declined 6.41% to 13.53, indicating volatility cooling off.
“The Indian equity markets exhibited notable resilience, with robust participation across the board. The benchmark index opened on a positive note and, despite intermittent volatility during the session, managed to sustain its upward momentum.
A surge in buying activity during the penultimate hour played a key role in securing a strong close,” said Osho Krishan, Chief Manager – Technical and Derivative Research at Angel One.
Budget Week Outlook
Considering recent developments, the domestic market appears well positioned to gain further momentum during the Budget week, Krishan added.
“Looking ahead, the positive momentum seen over the last two days could continue, supported by optimism around the India–EU free trade agreement and the upcoming Union Budget, while markets track global cues and the ongoing Q3 earnings season,” said Siddhartha Khemka, Head of Research – Wealth Management, Motilal Oswal Financial Services.
On the global macro front, investors will closely watch the US Federal Reserve’s interest rate decision later today, although rates are widely expected to remain unchanged, Khemka added.
Market breadth remained positive, with 2,920 gainers against 1,315 losers on the BSE. Investors wealth soared by Rs 5.9 lakh crore to Rs 459.53 lakh crore. Over the past two days, it has increased by Rs 7.97 lakh crore.
Institutional Buying Activity
Foreign portfolio investors turned net buyers for the first time in 15 trading sessions, purchasing shares worth Rs 480.26 crore, while domestic institutional investors bought shares worth Rs 3,360.59 crore, according to provisional BSE data.
Barring consumer durables and FMCG, all other sectoral indices on the BSE ended in the green. Capital goods, oil & gas, industrials, energy and power emerged as the top gainers, rising by up to 5.32%.
BEL, Eternal, Bajaj Finance, Power Grid and Trent were the top Sensex gainers, advancing by up to 8.9%. In contrast, Asian Paints, Maruti Suzuki, Sun Pharma, Infosys and Bharti Airtel were the top laggards, falling by up to 4.34%.