The stock markets bounced back on Wednesday, with the Sensex rising more than 350 points and the Nifty 50 moving above the 23,400 mark in early trade. Buying returned to financial, metal, FMCG and realty stocks after the benchmarks ended lower in the previous session.
The Sensex opened on a firm note and gained around 350 points during morning trade. The Nifty 50 also moved higher, crossing 23,400 as investors picked up shares across several sectors. The recovery came after the Sensex had fallen nearly 330 points and the Nifty had declined more than 85 points on Tuesday.
Market breadth was positive, with more stocks advancing than declining. The broader market also saw buying interest, suggesting that the recovery was not limited to a handful of heavyweight stocks.
Financial stocks were among the biggest contributors to the gains. Bajaj Finance emerged as one of the top Nifty 50 gainers, rising more than 2%, while Bajaj Finserv also gained over 2%. The two stocks benefited from renewed buying interest, with Bajaj Finance also getting a boost after UBS upgraded its view on the stock.
Metal stocks were another major source of strength. The Nifty Metal index gained more than 1%, with steel and mining companies attracting buyers. JSW Steel, Tata Steel and Hindalco were among the prominent gainers. SAIL also moved sharply higher, gaining more than 4% at one point during the session.
The broader market followed the positive trend. Motilal Oswal, 360 ONE WAM and Radico Khaitan were among the stronger performers in the Nifty Midcap 150 index.
Among the top gainers, Bajaj Finance, Bajaj Finserv, JSW Steel, Tata Steel and Hindalco stood out in the Nifty 50. In the midcap space, Motilal Oswal, 360 ONE WAM, Radico Khaitan and SAIL were among the stocks seeing strong buying.
However, not every stock participated in the rally. Suzlon Energy, Paytm, Persistent Systems, Sundaram Finance and Lupin were among the notable laggards in the Nifty Midcap 150. Suzlon Energy fell more than 2%, while Paytm also declined over 2%. Persistent Systems remained under pressure as investors booked profits in the technology stock.
The IT sector was one of the weaker pockets of the market, continuing the pressure seen in the previous session. Some banking stocks also traded lower even as the broader banking index gained. ICICI Bank and Federal Bank were among the stocks in the red during morning trade.
One of the key factors supporting sentiment was the movement in crude oil prices. Brent crude slipped below $100 a barrel, easing some concerns for oil-importing economies such as India. Hopes of possible talks between the US and Iran also helped reduce some of the recent pressure on crude prices.
Lower oil prices are important for Indian markets because India imports a large share of its crude requirement. A sustained fall in crude can help contain inflationary pressure and reduce the cost burden for several businesses. It can also ease concerns around the rupee and India’s import bill.
Global cues were mixed but offered some support. US technology stocks helped the Nasdaq end at a record high in the previous session, while the Dow closed lower. Asian markets were also mixed, leaving investors to balance positive technology cues with concerns over global growth, interest rates and geopolitical developments.
Investors were also watching foreign institutional investor activity. Continued selling by overseas funds has remained a concern for Indian equities, particularly when global markets turn volatile. Market participants are closely tracking foreign fund flows, crude prices, the rupee and developments in West Asia for signs of the market’s next direction.
The primary market also added to the day’s activity. SS Retail made a strong stock market debut, listing at a substantial premium to its issue price. The stock opened at ₹639.10 on the BSE against an issue price of ₹424.
Hero Motors, meanwhile, had a weaker start, opening below its issue price on the NSE before recovering during early trade. The stock later moved sharply higher, reflecting strong buying interest after its initial decline.
Investors were also keeping an eye on corporate developments involving Adani Group companies, oil marketing companies and Persistent Systems. Persistent Systems said it had secured 83.25% of Nagarro’s outstanding share capital, adding to the stock-specific activity in the technology space.