Indian stock markets staged a strong recovery on Wednesday, with both the Sensex and Nifty closing over 1% higher. The rebound came after US Commerce Secretary Howard Lutnick indicated the possibility of tariff relief for Mexico and Canada, sparking optimism among investors that broader trade restrictions could be reconsidered.
The 30-share Sensex surged 740.30 points, or 1.01%, to settle at 73,730.23, after touching an intra-day high of 73,933.80. Meanwhile, the Nifty broke its ten-day losing streak, climbing 254.65 points, or 1.15%, to close at 22,337.30. Earlier in the session, Nifty fluctuated between 22,394.90 and 22,067.80, recovering from the 877-point decline it had suffered over the past ten trading days.
The rally was driven by strong buying in auto, power, and technology stocks, as market sentiment turned optimistic following the latest developments on trade policy. Analysts pointed to a bullish technical setup, with Hrishikesh Yedve of Asit C. Mehta Investment Intermediates Ltd. noting that Nifty had formed a bullish belt hold candlestick pattern, signaling strength in the market. He suggested that as long as the index holds above the 21,800 support level, further gains toward the 22,300-22,500 range could be possible.
Investor confidence remained robust, with 46 out of the 50 Nifty stocks ending in positive territory. Among the top gainers were Adani Ports, Tata Steel, Adani Enterprises, Mahindra & Mahindra, and Power Grid Corporation, which saw gains of up to 5.15%. However, a few stocks, including Bajaj Finance, Indian Bank, HDFC Bank, and Shriram Finance, closed lower, with losses reaching up to 3.37%.
Broader market indices mirrored the strong performance of the benchmark indices, with small-cap stocks leading the rally. The Nifty Smallcap100 index surged 2.96%, while the Nifty Midcap100 gained 2.42%, reflecting widespread buying interest across market segments.
Sectoral indices on the NSE also ended the session in the green, with Nifty Auto, BSE Power, and BSE Metal emerging as the top-performing sectors. Similarly, the BSE Midcap and BSE Smallcap indices advanced more than 2%, highlighting the strong momentum in the broader market.
Technical analysts remained optimistic about the market’s short-term prospects. Rupak De of LKP Securities said that Nifty had found strong support in the 21,800-22,000 range and had rebounded after a period of sideways trading. He highlighted that the Relative Strength Index (RSI) had entered a bullish crossover, suggesting further upside potential. In the near term, Nifty is expected to maintain its positive trend, with a possible move towards 22,700 or higher, while support remains firm at the 22,000-22,100 levels.
-IANS
