Sensex and Nifty Surge as Banking Stocks Rally Amid Inflation Drop
Market Performance Overview
Mumbai: The equity market indices, Sensex and Nifty, experienced a rise for the third consecutive day on Wednesday, driven by strong purchases in blue-chip banking stocks and new foreign investments, as retail inflation dipped to its lowest in nearly six years, sparking hopes for further interest rate reductions.
Despite a downturn in global markets, the 30-share BSE Sensex increased by 309.40 points, or 0.40%, reaching a two-week peak of 77,044.29 during a session marked by volatility. The index fluctuated between a high of 77,110.23 and a low of 76,543.77, a total swing of 566.46 points.
The NSE Nifty also saw gains, climbing 108.65 points, or 0.47%, to close at 23,437.20.
Among the Sensex constituents, IndusInd Bank led the charge with a 7.12% increase. Other notable gainers included Axis Bank, Adani Ports, Asian Paints, Bharti Airtel, State Bank of India, and ITC.
Conversely, stocks like Maruti, Infosys, Tata Motors, Larsen & Toubro, NTPC, and Bajaj Finance faced declines.
Foreign Institutional Investors (FIIs) shifted to a buying stance after a period of selling, acquiring equities worth ₹6,065.78 crore on Tuesday, as per exchange data.
Vinod Nair, Head of Research at Geojit Investments Limited, commented, "Globally, markets are in a phase of fresh consolidation amid escalating tariff tensions. Despite global weaknesses, the Indian market displayed a slight positive sentiment, with expectations that the US-China trade conflict may ultimately favor India. Additionally, March's CPI inflation, at a near six-year low, suggests potential rate cuts ahead."
On the domestic front, the Q4 FY25 earnings season has begun on a weak note, with overall expectations remaining low, indicating possible profit-taking at elevated levels, Nair noted.
In Asian markets, South Korea's Kospi, Tokyo's Nikkei 225, and Hong Kong's Hang Seng all closed lower, while the Shanghai SSE Composite index finished higher. European markets were also down, and US markets closed in the red on Tuesday.
The global oil benchmark, Brent crude, rose by 0.91% to USD 65.22 per barrel.
Following a strong performance on Tuesday, the Sensex had surged by 1,577.63 points, or 2.10%, closing at 76,734.89, while the Nifty had jumped by 500 points, or 2.19%, to reach 23,328.55.