By Our Business Correspondent
Indian equity benchmarks staged a strong comeback on Wednesday, with the BSE Sensex surging 888.68 points (1.16%) to close at 77,654.60 and the Nifty 50 climbing 264.85 points (1.10%) to settle at 24,250.20, as investors returned to risk assets amid renewed foreign institutional buying, easing volatility and growing confidence that the US Federal Reserve will keep interest rates unchanged at its latest monetary policy meeting.
The rally was broad-based, extending beyond frontline stocks to the mid- and small-cap segments, reflecting improving market sentiment despite lingering concerns over elevated crude oil prices and geopolitical tensions in the Middle East.
Technology counters spearheaded the gains, while metal, FMCG, banking and infrastructure stocks also witnessed healthy buying. Market participants attributed the sharp rise to a combination of positive domestic corporate earnings, improved global cues, and a reversal in foreign portfolio investment trends after several sessions of sustained selling.
Foreign Investors Return
One of the most significant developments during the session was the return of Foreign Institutional Investors (FIIs) as net buyers after four consecutive trading sessions of net selling.
The renewed buying by overseas investors eased concerns over capital outflows that had weighed on domestic equities earlier this week. Analysts said the return of foreign flows improved investor confidence, particularly in large-cap stocks that had seen pressure in recent sessions.
The decline in market volatility also reflected improving sentiment.
The India VIX, often referred to as the market’s “fear gauge”, declined 4.41% to 12.01, indicating lower expectations of near-term volatility and a stronger appetite for risk among investors.
IT Sector Extends Winning Streak
Information technology stocks emerged as the day’s biggest gainers, with the Nifty IT Index rising 2.32% to 31,123.10, marking its fourth consecutive day of gains. During this period, the sector has rallied more than 9%, making it one of the strongest-performing segments of the market.
The rally in IT stocks coincided with a global rotation by investors away from artificial intelligence-linked semiconductor companies towards software services firms.
Infosys was among the top contributors to the benchmark rally, advancing 4.32%.
Other major IT gainers included:
- LTIMindtree (+2.34%)
- Tata Consultancy Services (+1.75%)
- HCL Technologies (+1.70%)
- Coforge (+1.25%)
- Wipro (+1.20%)
- Persistent Systems (+0.62%)
- Oracle Financial Services Software (+0.56%)
- Tech Mahindra (+0.42%)
Analysts believe Indian software exporters also benefited from expectations that stable US interest rates could support technology spending by global clients over the coming quarters.
Banking and Telecom Add Momentum
Besides technology, financials and telecom stocks also played a key role in lifting benchmark indices.
HDFC Bank gained 1.75%, while Bharti Airtel advanced 2.32%, making both stocks among the largest contributors to the Nifty’s gains.
Strong participation from heavyweight stocks across multiple sectors helped sustain buying throughout the trading session.
Broader Markets Continue to Outperform
Investor appetite remained strong beyond blue-chip counters.
The BSE MidCap 150 Index advanced 0.78%, while the BSE SmallCap 250 Index rose an even stronger 1.47%, indicating continued interest in broader market opportunities.
Market breadth remained decisively positive.
On the BSE:
- 2,533 shares advanced
- 1,705 shares declined
- 201 shares remained unchanged
The healthy advance-decline ratio suggested that buying interest was widespread rather than concentrated in a handful of heavyweight stocks.
Global Cues Support Domestic Equities
Global markets provided supportive cues despite mixed performances across regions.
Asian markets ended mixed as investors adopted a cautious approach ahead of the US Federal Reserve’s monetary policy announcement while monitoring geopolitical tensions and movements in crude oil prices.
European markets traded mostly higher, supported by encouraging corporate earnings from major banking, mining and luxury goods companies.
Meanwhile, Dow Jones futures were trading around 155 points lower, indicating a cautious opening for Wall Street later in the day.
Investors across global markets remained focused on the outcome of the Federal Reserve’s policy meeting.
Although the Fed is widely expected to keep benchmark interest rates unchanged, market participants are expected to closely examine the accompanying policy statement and comments from Federal Reserve Chair Kevin Warsh for indications on the future trajectory of monetary policy amid persistent inflationary pressures, tariff uncertainties and volatile energy prices.
Overnight in the United States, Wall Street closed on a mixed note.
The Dow Jones Industrial Average gained more than one percent, supported by encouraging corporate earnings and sectoral rotation beyond technology.
The S&P 500 posted modest gains, while the Nasdaq Composite edged lower as investors reduced exposure to high-growth technology stocks ahead of the Federal Reserve’s policy decision.
Corporate Earnings Drive Stock-Specific Action
The ongoing first-quarter earnings season remained one of the biggest drivers of stock-specific movements.
Larsen & Toubro
Engineering and infrastructure major Larsen & Toubro (L&T) gained 2.48% after announcing that its Energy Hydrocarbon Onshore business secured a major Engineering, Procurement and Construction (EPC) contract from Kuwait Oil Company.
The company also reported strong June quarter earnings, with consolidated net profit rising 14% year-on-year to ₹4,123 crore, while consolidated revenue increased 7% to ₹67,942 crore.
International operations continued to contribute significantly, accounting for 51% of total revenue, underscoring L&T’s growing global business footprint.
Consumer Goods
Colgate-Palmolive (India) rose 1.72% after reporting a 7% increase in standalone net profit to ₹343.08 crore during the June quarter, while revenue from operations rose nearly 12%.
Asian Paints added 0.91% after posting an almost 40% jump in consolidated net profit to ₹1,539.25 crore, supported by improved sales growth.
Pharmaceuticals
Gland Pharma climbed 4.97% after receiving approval from the US Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for Sugammadex Injection.
Healthcare stocks remained in focus as investors continued to reward companies expanding their global regulatory approvals.
Automation and Manufacturing
Honeywell Automation India surged 7.17% after posting a 21% increase in profit after tax for the June quarter.
Craftsman Automation jumped 6.90% after reporting a remarkable 116% rise in consolidated profit, supported by robust revenue growth.
Financial Services
Tata Capital gained 1.32% after reporting a 56% year-on-year increase in consolidated net profit to ₹1,547.38 crore, aided by strong lending growth and higher net interest income.
Chemicals and Fertilisers
Among the session’s strongest performers was Paradeep Phosphates, which soared 12.49% after reporting a 24% increase in quarterly profit alongside nearly 36% growth in revenue, reflecting improved operational performance.
Specialty Chemicals and Fragrances
S H Kelkar & Company emerged as one of the biggest gainers of the day, rallying 15.30% after reporting a 76% jump in quarterly net profit, driven by healthy growth in its fragrance and flavour businesses.
Renewable Energy
ACME Solar Holdings rose 2.95% after securing ₹3,404.57 crore in long-term project financing from Power Finance Corporation for its 250 MW Firm and Dispatchable Renewable Energy project.
Biofuels
TruAlt Bioenergy gained 2.91% after reporting an exceptional 1,108% year-on-year rise in net profit, supported by robust ethanol demand and successful integration of its dual-feed ethanol platform.
Stocks Under Pressure
Not every earnings announcement was welcomed by investors.
Phoenix Mills fell 5.94% after reporting a sequential decline in quarterly earnings despite year-on-year growth.
Pine Labs dropped 5.58%, with investors appearing unimpressed despite strong profit growth, suggesting expectations had already been priced into the stock.
CarTrade Tech declined 3.67% after reporting lower sequential profitability.
VST Industries slipped 3.77% following weaker quarterly earnings, while investors also booked profits in select consumer-focused stocks.
Commodity Markets
Energy markets remained volatile.
Brent crude oil for September 2026 delivery jumped 4.54% to US$87.91 per barrel, reflecting renewed geopolitical concerns and supply uncertainties.
Higher crude prices remain an important risk for India, given the country’s dependence on imported energy. Persistently elevated oil prices could exert pressure on inflation, corporate margins and the country’s current account balance.
Gold prices remained largely stable.
MCX Gold futures for August delivery traded marginally higher at ₹1,41,639 per 10 grams, reflecting cautious investor positioning ahead of the Federal Reserve’s policy announcement.
Currency and Bond Market
The Indian rupee strengthened modestly against the US dollar.
The partially convertible rupee traded around 95.66 per dollar, compared with 95.82 in the previous session.
Meanwhile, the yield on India’s benchmark 10-year government bond edged higher to 6.799%, indicating some caution in the fixed-income market.
The US Dollar Index remained largely unchanged near 101.39, while the yield on the benchmark US 10-year Treasury rose to around 4.63%.
IPO Market
Primary market activity also remained in focus.
Manipal Health Enterprises’ initial public offering continued to witness a cautious response from investors. According to stock exchange data available during market hours, the issue had received bids for approximately 1.31 crore shares against an offer size of over 9 crore shares, translating into subscription of around 0.15 times. The IPO is scheduled to close on 31 July 2026 and carries a price band of ₹560–590 per share.
Outlook
Market participants will now closely monitor the outcome of the US Federal Reserve’s monetary policy meeting, global crude oil movements, foreign institutional investment trends and the ongoing corporate earnings season for further direction.
Analysts believe sustained foreign inflows, resilient corporate earnings and easing volatility could continue to support Indian equities in the near term. However, elevated crude oil prices, geopolitical uncertainties and commentary from the Federal Reserve on future interest rate policy are likely to remain key variables influencing investor sentiment.
Disclaimer: This report is based on market data, company disclosures and publicly available information as of Wednesday’s trading session. It is intended solely for news and informational purposes and should not be construed as investment, financial or trading advice. Investors are advised to consult qualified financial advisers before making investment decisions.
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