AMN
Indian equity benchmarks surged on Wednesday, buoyed by strong cues from Asian markets following news of a trade breakthrough between Japan and the United States. The development lifted investor sentiment globally, reflecting positively on Indian indices as well.
The BSE Sensex rallied 540 points, or 0.66%, to settle at 82,727, while the NSE Nifty 50 rose 159 points, or 0.60%, to close at 25,220 — marking a strong rebound after recent volatility.
Broader Market Edges Up Amid Mixed Sentiment
The broader market also saw modest gains. On the BSE, the Mid-Cap Index rose by over 0.2%, while the Small-Cap Index managed to inch up by 0.05%, signaling cautious optimism among retail and institutional investors. However, market breadth remained slightly negative, with 2,025 stocks declining, compared to 2,005 advancing, and 168 remaining unchanged, indicating a mixed undertone in overall sentiment.
At the NSE, 71 stocks touched new 52-week highs, while 25 stocks plunged to their 52-week lows, reflecting sharp divergence in performance across sectors and companies.
Sensex Movers: Autos, Telecom Shine; FMCG, Realty Lag
Out of the 30 Sensex constituents, 23 stocks ended in the green, indicating broad-based participation in the day’s rally.
- Top Gainers:
- Tata Motors led the charge with a 2.5% gain amid renewed optimism in the auto sector.
- Bharti Airtel climbed 2%, supported by rising subscriber additions and ongoing 5G rollout momentum.
- Bajaj Finance advanced 1.7%, on expectations of strong Q1 earnings.
- Top Losers:
- Hindustan Unilever declined 1.2%, dragged by inflationary concerns and cautious outlook on rural demand.
- Bharat Electronics and UltraTech Cement both fell 0.7%, likely on profit-booking after recent gains.
Sectoral Snapshot: Telecom, Auto Lead; Realty Sinks
Sector-wise performance remained robust, with 17 of the 21 BSE sectoral indices closing in the green:
- Top Performing Sectors:
- Telecom surged 1.14%, continuing its uptrend amid favorable government policies and expanding ARPU.
- Auto gained 0.86%, aided by strong monsoon forecasts and upbeat retail sales.
- Bankex advanced 0.75%, supported by private lenders.
- Underperformers:
- Realty plunged 2.60%, possibly due to rising interest rate concerns and weak booking data in select metros.
- FMCG slipped 0.46%, while Capital Goods dipped 0.31%.
Global Sentiment Key to Short-Term Direction
Today’s rally comes amid global optimism, particularly after Japan’s successful trade negotiation with the United States, which soothed investor nerves about protectionist trends. Asian markets, including the Nikkei and Hang Seng, also posted gains, creating a ripple effect on Indian equities.
Analysts, however, caution that sustained buying interest will depend on upcoming earnings reports, global inflation data, and the US Fed’s policy outlook. Domestically, the market is also tracking monsoon progress, rural demand indicators, and macroeconomic stability.