Benchmark Sensex rose by 323 points while Nifty closed higher for the sixth consecutive day on Wednesday following buying in IT, select financial and capital goods shares amid renewed optimism over a successful conclusion of India-US trade talks.
Photograph: Francis Mascarenhas/Reuters
The 30-share BSE Sensex climbed 323.83 points or 0.40 per cent to settle at 81,425.15, registering its third straight day of gain.
During the day, it jumped 542.56 points or 0.66 per cent to 81,643.88.
Rising for the sixth consecutive day, the 50-share NSE Nifty rallied 104.50 points or 0.42 per cent to close at 24,973.10.
A rally in IT and capital goods shares and hopes that the US Federal Reserve will cut interest rates next week also instilled optimism in the markets, analysts said.
Signalling a thaw in the bilateral chill between India and the US, President Donald Trump has said he feels “certain” that there will be “no difficulty” for the two countries to come to a “successful conclusion” in trade talks and he looks forward to speaking with his “very good friend” Prime Minister Narendra Modi in the coming weeks.
Responding to the post, Prime Minister Modi on Wednesday expressed confidence that the ongoing negotiations will pave the way for unlocking the limitless potential of the partnership between them.
Among Sensex firms, Bharat Electronics rose the most by 4.26 per cent. HCL Tech gained 2.57 per cent, Bajaj Finance by 2.19 per cent, TCS by 1.99 per cent, Tech Mahindra by 1.88 per cent and Infosys by 1.85 per cent. Gains in Axis Bank and State Bank of India also supported the rally.
However, Mahindra & Mahindra emerged as the biggest loser, falling by 2.47 per cent. Maruti dropped 1.53 per cent and Tata Motors by nearly 1 per cent due to profit-taking. UltraTech, Eternal and Power Grid were also among the laggards.
“Renewed optimism around ongoing trade negotiations between India and the US lifted market sentiment.
“Anticipation of stronger H2 FY26 earnings, driven by GST rationalisation and the benefits of monetary easing, is providing resilience to valuations,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
He further said that the IT index extended its outperformance on hopes of a potential Fed rate cut next week and a revival in technology spending.
“Investors remain focused on the progress of India-US trade talks for signals of a constructive resolution to tariff-related issues,” he said.
The BSE midcap gauge jumped 0.84 per cent and smallcap index climbed 0.72 per cent.
Among sectoral indices, BSE Focused IT surged 2.52 per cent, IT jumped 2.48 per cent, capital goods (1.88 per cent), teck (1.59 per cent), industrials (1.20 per cent) and realty (1.15 per cent).
Auto declined 1.21 per cent, consumer discretionary (0.52 per cent), consumer durables (0.22 per cent) and telecommunication (0.10 per cent).
“The uptrend was supported by renewed optimism over progress in India-US trade negotiations, alongside positive foreign flows in the cash market after a period of continuous decline, which further lifted sentiment,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said.
“US political signals added optimism for Indian equities.
“Donald Trump noted that the US and India are “continuing negotiations to address trade barriers,” while reaffirming his ties with Prime Minister Modi.
The comment fueled strength in IT stocks, with investors eyeing potential tailwinds for the export-driven sector,” Hariprasad K, Research Analyst and Founder – Livelong Wealth, said.
As many as 2,410 stocks advanced while 1,717 declined and 155 remained unchanged on the BSE.
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng settled in positive territory.
Foreign Institutional Investors (FIIs) tuned buyers on Tuesday after days of offloading equities.
They bought stocks worth Rs 2,050.46 crore, according to exchange data.
Global oil benchmark Brent crude climbed 0.65 per cent to $66.82 a barrel.
