Nifty snaps 10-day losing streak, gains 1.2% to close at 22,337 points

Equity markets posted their biggest single-day gain in a month on Wednesday, helping the Nifty end its record 10-day losing streak. The index rose 1.2 per cent to 22,337, driven by buying across the board after a steep correction and improved global market sentiment.

 

The Sensex also gained 1.01 per cent to 73,730, and the total market capitalisation of the BSE-listed firms rose by ₹8 trillion to ₹393 trillion. India's market capitalisation is still down by ₹49 trillion so far in 2025.

 

Both the indices had ended at their lowest in nine months in the previous session. The latest rally was fueled by hopes of a thaw in trade tensions and value buying after sustained losses.

 

US Treasury Secretary Howard Lutnick hinted at a partial rollback of tariffs against Canada, and Mexico. Chinese authorities also announced stimulus measures to mitigate the impact of rising trade tensions with the US.

 

Metal stocks were among the top gainers, with the Nifty Metal Index rising 4 per cent.

 

According to Siddhartha Khemka, head of research and wealth management at Motilal Oswal Financial Services, China's decision to restructure its steel industry and cut output is expected to reduce the dumping of cheap steel into the Indian market, benefiting domestic steel companies.

 

Foreign portfolio investors (FPIs) continued to sell, with a net outflow of ₹2,895 crore on Wednesday, while domestic institutions bought shares worth ₹3,371 crore.

 

Investors remain cautious about the sustainability of the gains, citing concerns over US trade tariffs and deteriorating corporate profits.

 

Ajit Mishra, SVP of research at Religare Broking, advised traders to avoid reading too much into the single-day bounce and wait for further confirmation.

 

"We maintain a stock-specific approach, favouring banking, financials, and metals for long trades while remaining selective in other sectors," he said.

 

The market breadth was strong, with 3,220 stocks advancing and 806 declining. The Nifty may face resistance around the 22,500-22,700 zone if the recovery continues, said technical analysts.