The Indian stock market made a strong recovery on Wednesday, with both the Sensex and Nifty closing in positive territory, just ahead of the deadline for reciprocal tariffs set by US President Donald Trump.
The rally was largely driven by a resurgence in banking and IT stocks, which helped the indices bounce back after recent fluctuations. The Sensex recorded a substantial gain of 592.93 points, or 0.78 per cent, to settle at 76,617.44. Throughout the trading session, the index moved between an intra-day high of 76,680.35 and a low of 76,064.94, reflecting a volatile yet optimistic market sentiment.
Similarly, the Nifty index experienced a strong uptick, rising by 166.65 points, or 0.72 per cent, to close at 23,332.35. The index touched an intra-day peak of 23,350 while its lowest level during the day stood at 23,158.45, highlighting a firm upward momentum.
Among the 30 stocks constituting the Sensex, 21 ended the session with gains. Zomato, Titan, IndusInd Bank, Maruti Suzuki India, and Tech Mahindra emerged as the top performers, with their stock prices appreciating by as much as 4.75 per cent. These companies saw increased buying interest from investors, contributing significantly to the market’s overall bullish trend.
Conversely, a handful of heavyweight stocks faced declines, including Ultratech Cement, Nestle India, Bajaj Finance, Power Grid Corporation, and Bajaj Finserv. These stocks witnessed losses of up to 1.36 per cent, reflecting selective profit-booking by investors.
Midcap and smallcap stocks outperformed their large-cap counterparts, signaling broader market participation in the rally. The Nifty Midcap100 index surged 1.61 per cent, while the Nifty Smallcap100 index climbed 1.12 per cent, underscoring the positive sentiment in the mid and smallcap segments.
All sectoral indices on the NSE concluded the session in the green. The Nifty Realty index emerged as the top gainer, surging 3.61 per cent, indicating strong buying interest in the real estate sector. Following closely were the Consumer Durables, Banking, and Financial Services indices, which posted gains of up to 2.51 per cent, demonstrating the resilience of these sectors.
The timing of this market rally is significant, as investors remain keenly focused on the upcoming implementation of new trade tariffs by the United States from April 2 (US time). The anticipation of potential trade implications has created an air of caution, even as domestic markets continue to exhibit strength.
“Despite global uncertainties, Indian markets showed resilience, supported by strong buying in key sectors,” commented market analysts. The positive sentiment was further bolstered by India’s manufacturing Purchasing Managers’ Index (PMI) for March, which hit an eight-month high. This indicator has fueled optimism about corporate earnings for the fourth quarter of FY25, reinforcing expectations of a steady economic recovery.
Adding a technical perspective, Rupak De of LKP Securities noted, “Following a recent correction, the index appears to be finding support around the critical 50 EMA on the daily timeframe.” This suggests that markets may continue to see strength unless faced with adverse global triggers.
Meanwhile, the Indian rupee remained largely stable, trading near 85.47 against the US dollar. Traders and investors are closely monitoring the potential impact of US reciprocal tariff measures, as any significant developments on the global trade front could influence currency and stock market trends in the coming days.
