The Indian equity benchmark indices recovered from early morning losses to trade higher on Wednesday, buoyed by strong buying in IT, FMCG, and metal stocks. The rebound came after a choppy start to the session, with global and domestic cues shaping investor sentiment.

The Sensex, which slipped 146.64 points to touch 81,497.75 in early trade, rebounded sharply to quote at 81,852 around 1 pm. The Nifty, which had dropped 47.5 points to 24,933.15, also crossed back above the psychological 25,000 mark, trading at 25,043. Market breadth tilted positive, with 2,143 stocks advancing against 1,383 declines, while 134 remained unchanged.

Among the top gainers were Infosys, TCS, Wipro, HUL, and ETERNAL, with IT stocks rising up to 4 percent intraday. Market analysts attributed the buying momentum to expectations surrounding the upcoming Jackson Hole symposium hosted by the US Federal Reserve. The three-day event, scheduled to begin on August 21 in Wyoming, will feature a closely watched address by Fed Chair Jerome Powell on the economic outlook and monetary policy. Ahead of the meeting, global investors turned risk-on, boosting IT counters, which derive a large portion of revenue from overseas markets.

FMCG stocks also saw renewed investor interest, extending the gains they have witnessed since Prime Minister Narendra Modi’s Independence Day address on August 15. In his speech, the Prime Minister hinted at sweeping reforms to the GST rate structure ahead of the festive season. According to market observers, the prospect of tax rationalisation has lifted expectations of a demand boost across consumption-driven sectors, with FMCG, automobiles, and select financial stocks expected to benefit.

The rally was further supported by improving diplomatic signals between India and China. Reports suggested that Beijing has eased curbs on exports of key industrial inputs, including fertilisers, rare earth magnets, and tunnel-boring machines. Chinese Foreign Minister Wang Yi, during his recent visit to New Delhi, reportedly conveyed assurances to External Affairs Minister S. Jaishankar regarding smoother trade flows. Analysts noted that the development has improved sentiment, though uncertainties remain given the looming August 27 deadline for the imposition of a 25 percent secondary tariff on Indian exports.

Currency movement also played its part in lifting investor mood. The rupee strengthened to its highest level this month, breaching the 87-mark against the US dollar, supported by positive global cues and optimism over easing geopolitical tensions. Reports of US President Donald Trump pushing for a peace initiative in Ukraine, along with Hamas agreeing to a truce deal in Gaza mediated by Qatar and Egypt, helped calm global markets.

From a technical perspective, traders remained cautiously optimistic. Anand James, Chief Market Strategist at Geojit Financial Services, said the bounce off the 24,850 level in the Nifty was a constructive signal. “As long as 24,850 holds, our preferred strategy would be to buy on dips, with upsides capped between 25,096 and 25,200,” he said.

With global central banks in focus and geopolitical headlines influencing investor behaviour, analysts said the current rebound could face hurdles. However, Wednesday’s rally suggested that domestic investors continue to find confidence in select sectors, particularly IT and FMCG, amid improving external signals.