Markets rise for second consecutive day amidst gains in tech stocks

The benchmark Nifty 50 index closed at 23,163, up 206 points, or 0.9 per cent, extending its two-day gain to 1.51 per cent

Benchmark indices rose for a second day on Wednesday as investors judged recent losses as excessive and looked to scoop up shares at beaten-down valuations. Nifty 50 closed at 23,163, up 206 points or 0.9 per cent, extending its two-day gain to 1.51 per cent.

 

The index closed at a near seven-month low of 22,829 on Monday. The broader markets also rallied with the Nifty Midcap 100 and the Nifty Smallcap 100 gaining 2.3 per cent and 3.3 per cent, respectively.

 

The Sensex added 632 points or 0.83 per cent to 76,533. Technology stocks contributed the most to Sensex gains. Infosys, which rose 2.8 per cent, was the biggest contributor to Sensex, followed by Zomato, which jumped 6.8 per cent, and TCS, which climbed 1.5 per cent.

 

The Nifty IT index rose 2.62 per cent after dropping 4 per cent in the last two sessions as global tech stocks rebounded amid an easing of concerns over the threat posed by the new low-cost Chinese AI model DeepSeek.

 

The gauge for tracking banking and financial services stocks also advanced, buoyed by a slew of measures taken by the Reserve Bank of India (RBI) to inject liquidity into the banking system.

 

The auto index also rose, driven by Bajaj Auto and TVS Motor which reported higher quarterly profits and forecast healthy demand and export growth. Shares of Maruti Suzuki, however, dropped over a per cent after its quarterly profit fell short of market estimates due to bigger discounts.

 

Experts said investor mood remained cautious amid sustained selling by foreign portfolio investors (FPIs). FPIs on Wednesday were net sellers to the tune of Rs 2,586 crore, while domestic institutions were net buyers to the tune of Rs 1,793 crore.

 

"The Indian market has demonstrated resilience in anticipation of the upcoming Union Budget, with expectations of measures aimed at stimulating consumption and job creation. Small and midcap stocks experienced a relief rally, while key index valuations are trading at a 5-year average, which appears attractive, given the strong long-term domestic outlook,” said Vinod Nair, head of research at Geojit Financial Services.