Indian equity indices ended on a strong note on Wednesday, led by continuous buying in banking, financial sectors, auto, and pharma stocks. The rally was also led by optimistic global cues, with key among them being optimism arising from news about the US-Japan trade deal.
The BSE Sensex closed the day at 82,726.64, higher by 539.83 points or 0.66 per cent. It had opened with a positive gap at 82,451.87, against the last close of 82,186.81.
The index maintained its bullish momentum for the day, touching a record high of 82,786.43, led by firm gains from index heavyweights such as Tata Motors, Bharti Airtel, and ICICI Bank.
The NSE Nifty 50 also ended higher, up 159 points or 0.63 per cent at 25,219.90.
Ashika Institutional Equities observed in a market commentary, "The day was marked by strong performance of major sectors like Banking, Financial Services, Automobiles, Healthcare, and Information Technology. On the other hand, there existed pockets of weakness in Realty, Media, Consumer Goods, and Metals, which is an indication of a sectorally bifurcated environment."
Across the world, investor sentiment was boosted by positive developments over the US-Japan trade deal, which has set up hopes for similar international trade agreements in the immediate future.
Leading gainers from the Sensex pack were Tata Motors, Bharti Airtel, Bajaj Finance, Maruti Suzuki, Bajaj FinServ, HDFC Bank, ICICI Bank, Eternal, Asian Paints, and SBI. Hindustan Unilever, Infosys, and Ultratech Cements were among the losers.
Among the 37 stocks in the Nifty 50 that rose, 13 closed in the red.
Sectorally, Nifty Bank rose 454 points or 0.80 per cent, Nifty Auto gained 203 points or 0.85 per cent, and Nifty IT increased by 92.60 points or 0.25 per cent. The Nifty FMCG index fell, though.
Wider market indices also reflected the upbeat mood. Nifty Next 50 rose 159 points, and Nifty 100 was up by 142 points or 0.55 per cent. The Nifty Midcap 100 closed 203 points or 0.34 per cent up. In contrast, the Nifty Smallcap 100 closed on a flat level.
In currency markets, the rupee was relatively flat, trading in a narrow range around 86.40 versus the US dollar, evidencing a marginal shift of merely 0.01 per cent. The dollar index also remained stable around 97.40, with investors globally looking to see what economic cues come next.
Speaking about currency movements, LKP Securities' Jateen Trivedi had to say, "Domestic capital markets added 0.65 per cent, while Fed Chair Powell's recent address kept the dollar in range-bound. Next week's U.S. interest rate decision will become a directional catalyst. Rupee should trade between 85.80–86.70."
