The benchmark indices rebounded on Wednesday, recouping the entire losses of the previous session despite weak global cues, supported by strong buying in IT and banking stocks.
The Sensex rose 513.45 points (0.61%), closing above the 85,000-mark for the first time since September 27, 2024, at 85,186.47. The Nifty also jumped 142.60 points (0.55%), ending the session above the 26,000-mark, at 26,052.65. On Tuesday, the Sensex and Nifty had fallen 0.33% and 0.40%, respectively.
The rally comes a day after a Morgan Stanley report said that the brokerage expects the Sensex to rally to 95,000, a rise of 13% as a base case scenario by December 2026. In case of a bull run, it could rise 27% to 1,07,000.
“The market rebound was supported primarily by unexpected strength in IT majors after Infosys announced its ₹18,000-crore share buyback effective November 20, lifting sentiment across the sector,” said Ajit Mishra, SVP – Research, Religare Broking. Continued resilience in the banking space also contributed meaningfully to the day’s gains, he added.
What did Vinod Nair say?
Vinod Nair, Head of Research, Geojit Financial Services, said, “National indices staged a strong rebound on renewed optimism over an India–US trade deal, following encouraging comments from the Union Commerce Minister. Large caps led the gains, outperforming the broader market.”
The IT sector rallied on revived hopes of a US Fed rate cut, supported by soft US labour data and currency tailwinds, while PSU banks advanced on merger-related buzz and improving fundamentals. Attention now turns to Thursday’s FOMC minutes for additional policy cues, Nair added.
Activity from DIIs and FPIs
Foreign portfolio investors bought shares worth Rs 1,580.72 crore and domestic institutional investors purchased shares worth Rs 1,360.27 crore, as per provisional data by the BSE.
Broader indices were mixed. While the BSE Midcap index gained 0.34%, the BSE Smallcap index fell 0.39%. Market breadth was negative, with 2,338 losers against 1,841 gainers on the BSE. Investors gained ₹1.12 lakh crore, taking the BSE’s total market capitalisation to ₹475.74 lakh crore.
Sectorally, IT, TECK, PSU banks, healthcare, and consumer durables were the top gainers, rising up to 3%, while realty and oil & gas were the top laggards. Banking gauges BSE Bankex and Bank Nifty hit their respective all-time highs.
Among the Sensex constituents, HCL Tech, Infosys, TCS, HUL, and Sun Pharma were the top performers, gaining up to 4.32%, while Tata Motors Passenger Vehicles, Maruti Suzuki, Adani Ports, Bajaj Finance, and Asian Paints were the top laggards, falling up to 2.79%.