After logging its worst-ever losing streak of 10 consecutive sessions, the Nifty rose 1% on Wednesday – the biggest single-day gain in a month – on the back of a relief rally amid mixed cues. Experts, however, said this rally could be short-lived, as US President Donald Trump’s tariff decisions will continue to cast a shadow over global markets.
The pullback was driven by several factors, including strength in Asian markets, bargain buying in oversold stocks and value buying in bluechip stocks, experts said.
The Sensex rose 740.30 points, or 1.01%, to close at 73,730.23 while the Nifty gained 254.65 points, or 1.15%, ending the day at 22,337.30.
The broader markets outperformed the benchmarks, with the BSE Midcap and Smallcap indices gaining 2.66% and 2.80%, respectively.
Foreign portfolio investors were net sellers to the tune of Rs 2,895.04 crore while domestic institutional investors bought shares worth Rs 3,370.60 crore on Wednesday, according to provisional data by the exchanges.
“Emerging markets, including India, witnessed a relief rally, supported by a weakening dollar. However, the sustainability of this recovery remains uncertain amid escalating global trade tensions and their potential long-term economic ramifications,” said Vinod Nair, head – research at Geojit Financial Services.
Ajit Mishra, SVP – research, Religare Broking, said while the market saw a much-needed rebound amid mixed cues, both investors and traders should not read too much into it and wait for further confirmation. “The session started on a positive note, driven by strength in select heavyweights, which gradually lifted the sentiment across broader markets.”
The market breadth was positive, with 3,246 stacks advancing and 768 declining.
All sectoral indices on the BSE and NSE ended in the green. Utilities, power, services, metal, and telecom were the top sectoral gainers, rising up to 4.4%.
Investors gained nearly ₹8 lakh crore as the total market capitalisation on the BSE surged to ₹393.04 lakh crore.
Markets in Hong Kong, Taiwan, South Korea, Thailand and Indonesia performed well, gaining up to 2.84%. European equity indices also traded higher, with Euro Stoxx 50, CAC 40 (France) and DAX (Germany) gaining up to 3.39%.
» Read More
