Sensex, Nifty jump over 1% as IT stocks power rebound despite Asia AI selloff
The BSE Sensex surged 888.68 points, or 1.16%, to close at 77,654.60, while the NSE Nifty50 gained 264.85 points, or 1.10%, to settle at 24,250.20.
Benchmark indices ended more than 1% higher on Wednesday, led by a strong rally in information technology and metal stocks, as investors continued rotating into Indian equities amid a global selloff in AI-linked technology shares and awaited the US Federal Reserve's policy decision later in the day.
The BSE Sensex surged 888.68 points, or 1.16%, to close at 77,654.60, while the NSE Nifty50 gained 264.85 points, or 1.10%, to settle at 24,250.20.
The rally was broad-based, with 13 of the 16 sectoral indices ending in the green. The Nifty IT index rose 2.32%, extending its winning streak to a fourth straight session, while the Metal index gained 2.31%. FMCG, Pharma, Media and Healthcare indices also posted healthy gains.
Technology stocks once again remained the biggest support for the benchmarks. Infosys jumped 4.50%, Hindustan Unilever gained 4.70%, TCS advanced 1.99% and HCLTech rose 1.86%. Larsen & Toubro climbed 2.55%, while Bharti Airtel, HDFC Bank, Kotak Mahindra Bank and Eternal also ended with strong gains.
The IT rally extended beyond the frontline names. Coforge climbed over 4%, while Infosys, LTIMindtree, Persistent Systems, Oracle Financial Services Software, TCS, HCLTech and Tech Mahindra all closed firmly higher as investors continued to favour Indian technology services companies over global AI-linked hardware stocks.
The gains came despite another rise in crude oil prices, with Brent crude climbing 4.23% to $87.65 a barrel and WTI crude advancing 4.08% to $82.49 following renewed geopolitical tensions in West Asia.
Vinod Nair, Head of Research at Geojit Investments Limited, said the rally reflected improving prospects for foreign fund inflows as investors unwind crowded AI trades globally.
"Given India's diversified market structure, the case for FII inflows is strengthening with the unwinding of crowded AI trades," he said.
He noted that despite Wednesday's rebound in crude oil prices, the broader weekly decline in oil has eased inflation concerns and strengthened confidence in India's growth outlook.
"Meanwhile, despite the intraday uptick in crude prices driven by renewed tensions in West Asia, the broader decline in oil prices over the week has eased inflation concerns and reinforced optimism around the growth outlook and reduction in operational costs. Domestically, while stronger-than-expected IIP data provided the catalyst for a positive start, the renewed risk appetite helped sustain the gains throughout the session, with IT and metal stocks emerging as key beneficiaries," Nair added.
He said investors are now focused on the US Federal Reserve's policy decision later tonight, although the widely expected pause in interest rates has largely been priced into markets.
Market breadth remained positive. The Nifty 100, Nifty 200 and Nifty 500 gained around 1%, while the Nifty Midcap 100 rose 0.82% and the Smallcap 100 climbed 1.48%, indicating broad participation across segments.
India VIX, the market's fear gauge, declined 4.41% to 12.01, signalling easing volatility and improving investor confidence.
Meanwhile, the rupee strengthened for a second consecutive session, ending 0.2% higher at 95.6475 against the US dollar compared with Tuesday's close of 95.8525, supported by sustained foreign inflows and overall positive market sentiment.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Benchmark indices ended more than 1% higher on Wednesday, led by a strong rally in information technology and metal stocks, as investors continued rotating into Indian equities amid a global selloff in AI-linked technology shares and awaited the US Federal Reserve's policy decision later in the day.
The BSE Sensex surged 888.68 points, or 1.16%, to close at 77,654.60, while the NSE Nifty50 gained 264.85 points, or 1.10%, to settle at 24,250.20.
The rally was broad-based, with 13 of the 16 sectoral indices ending in the green. The Nifty IT index rose 2.32%, extending its winning streak to a fourth straight session, while the Metal index gained 2.31%. FMCG, Pharma, Media and Healthcare indices also posted healthy gains.
Technology stocks once again remained the biggest support for the benchmarks. Infosys jumped 4.50%, Hindustan Unilever gained 4.70%, TCS advanced 1.99% and HCLTech rose 1.86%. Larsen & Toubro climbed 2.55%, while Bharti Airtel, HDFC Bank, Kotak Mahindra Bank and Eternal also ended with strong gains.
The IT rally extended beyond the frontline names. Coforge climbed over 4%, while Infosys, LTIMindtree, Persistent Systems, Oracle Financial Services Software, TCS, HCLTech and Tech Mahindra all closed firmly higher as investors continued to favour Indian technology services companies over global AI-linked hardware stocks.
The gains came despite another rise in crude oil prices, with Brent crude climbing 4.23% to $87.65 a barrel and WTI crude advancing 4.08% to $82.49 following renewed geopolitical tensions in West Asia.
Vinod Nair, Head of Research at Geojit Investments Limited, said the rally reflected improving prospects for foreign fund inflows as investors unwind crowded AI trades globally.
"Given India's diversified market structure, the case for FII inflows is strengthening with the unwinding of crowded AI trades," he said.
He noted that despite Wednesday's rebound in crude oil prices, the broader weekly decline in oil has eased inflation concerns and strengthened confidence in India's growth outlook.
"Meanwhile, despite the intraday uptick in crude prices driven by renewed tensions in West Asia, the broader decline in oil prices over the week has eased inflation concerns and reinforced optimism around the growth outlook and reduction in operational costs. Domestically, while stronger-than-expected IIP data provided the catalyst for a positive start, the renewed risk appetite helped sustain the gains throughout the session, with IT and metal stocks emerging as key beneficiaries," Nair added.
He said investors are now focused on the US Federal Reserve's policy decision later tonight, although the widely expected pause in interest rates has largely been priced into markets.
Market breadth remained positive. The Nifty 100, Nifty 200 and Nifty 500 gained around 1%, while the Nifty Midcap 100 rose 0.82% and the Smallcap 100 climbed 1.48%, indicating broad participation across segments.
India VIX, the market's fear gauge, declined 4.41% to 12.01, signalling easing volatility and improving investor confidence.
Meanwhile, the rupee strengthened for a second consecutive session, ending 0.2% higher at 95.6475 against the US dollar compared with Tuesday's close of 95.8525, supported by sustained foreign inflows and overall positive market sentiment.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Benchmark indices ended more than 1% higher on Wednesday, led by a strong rally in information technology and metal stocks, as investors continued rotating into Indian equities amid a global selloff in AI-linked technology shares and awaited the US Federal Reserve's policy decision later in the day.
The BSE Sensex surged 888.68 points, or 1.16%, to close at 77,654.60, while the NSE Nifty50 gained 264.85 points, or 1.10%, to settle at 24,250.20.
The rally was broad-based, with 13 of the 16 sectoral indices ending in the green. The Nifty IT index rose 2.32%, extending its winning streak to a fourth straight session, while the Metal index gained 2.31%. FMCG, Pharma, Media and Healthcare indices also posted healthy gains.
Technology stocks once again remained the biggest support for the benchmarks. Infosys jumped 4.50%, Hindustan Unilever gained 4.70%, TCS advanced 1.99% and HCLTech rose 1.86%. Larsen & Toubro climbed 2.55%, while Bharti Airtel, HDFC Bank, Kotak Mahindra Bank and Eternal also ended with strong gains.
The IT rally extended beyond the frontline names. Coforge climbed over 4%, while Infosys, LTIMindtree, Persistent Systems, Oracle Financial Services Software, TCS, HCLTech and Tech Mahindra all closed firmly higher as investors continued to favour Indian technology services companies over global AI-linked hardware stocks.
The gains came despite another rise in crude oil prices, with Brent crude climbing 4.23% to $87.65 a barrel and WTI crude advancing 4.08% to $82.49 following renewed geopolitical tensions in West Asia.
Vinod Nair, Head of Research at Geojit Investments Limited, said the rally reflected improving prospects for foreign fund inflows as investors unwind crowded AI trades globally.
"Given India's diversified market structure, the case for FII inflows is strengthening with the unwinding of crowded AI trades," he said.
He noted that despite Wednesday's rebound in crude oil prices, the broader weekly decline in oil has eased inflation concerns and strengthened confidence in India's growth outlook.
"Meanwhile, despite the intraday uptick in crude prices driven by renewed tensions in West Asia, the broader decline in oil prices over the week has eased inflation concerns and reinforced optimism around the growth outlook and reduction in operational costs. Domestically, while stronger-than-expected IIP data provided the catalyst for a positive start, the renewed risk appetite helped sustain the gains throughout the session, with IT and metal stocks emerging as key beneficiaries," Nair added.
He said investors are now focused on the US Federal Reserve's policy decision later tonight, although the widely expected pause in interest rates has largely been priced into markets.
Market breadth remained positive. The Nifty 100, Nifty 200 and Nifty 500 gained around 1%, while the Nifty Midcap 100 rose 0.82% and the Smallcap 100 climbed 1.48%, indicating broad participation across segments.
India VIX, the market's fear gauge, declined 4.41% to 12.01, signalling easing volatility and improving investor confidence.
Meanwhile, the rupee strengthened for a second consecutive session, ending 0.2% higher at 95.6475 against the US dollar compared with Tuesday's close of 95.8525, supported by sustained foreign inflows and overall positive market sentiment.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
