The stock market witnessed a volatile yet bullish session on Wednesday. Benchmark indices Sensex and Nifty closed with significant gains, driven by expectations of a dovish monetary policy from the Reserve Bank of India (RBI) and strong performance from the information technology sector.
The Sensex surged 809.53 points (1.00 per cent) to settle at 81,765.86, while the Nifty 50 gained 240.95 points (0.98 per cent) to close at 24,708.40. The market experienced intense fluctuations throughout the day, with the index dropping 266 points during the opening hour before recovering sharply and attracting buying interest.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the market’s positive sentiment, stating, “A positive turnaround from Foreign Institutional Investors (FIIs) for the past couple of days to India in expectation of a dovish monetary policy by RBI supported the sentiment.”
The Information Technology sector emerged as a key driver, rallying nearly 2 per cent. Top IT companies Trent (3.31 per cent), Infosys (2.42 per cent), and TCS (2.31 per cent) led the gains, buoyed by optimistic remarks from Federal Reserve Chair Jerome Powell that positively impacted global IT stocks.
Sectoral performance was predominantly positive, with IT, Financial, Auto, and FMCG sectors advancing between 0.58 per cent and 1.95 per cent. Only the PSU Bank and Realty sectors experienced slight selling pressure, registering declines ranging from 0.12 per cent to 0.25 per cent.
Ajit Mishra, SVP of Research at Religare Broking, noted the market’s potential, saying, “With the Nifty reclaiming 24,700—a level targeted after the breakout above 24,350—its sustenance could pave the way for a move toward 25,100.”
The broader market also showed strength, with the Nifty Midcap 100 rising 0.57 per cent and the Nifty Smallcap 100 surging 0.83 per cent. Market breadth remained positive, with 2,130 advances against 1,841 declines out of 4,083 stocks traded.
Notably, 237 stocks hit 52-week highs, while only 11 touched 52-week lows. The market saw 407 stocks in the upper circuit and 199 in the lower circuit.
While the market was overall positive, some stocks faced challenges. Top losers included SBI Life (-1.21 per cent), HDFC Life (-1.09 per cent), Bajaj Auto (-1.05 per cent), NTPC (-0.90 per cent), and Grasim (-0.38 per cent).
Technical analysts are closely watching key levels. Hardik Matalia from Choice Broking suggested that the 24,850 level could act as crucial resistance, followed by the psychological barrier at 25,000. He recommended traders adopt a “buy-on-dips” strategy, maintaining a stop-loss at 24,000 on a closing basis.
The India VIX, a measure of market volatility, increased marginally by 0.54 per cent to 14.53, indicating slight market uncertainty.
With the market showing resilience and positive momentum, investors and traders are keenly awaiting the upcoming RBI monetary policy, which could further influence market sentiment and direction.