Banking stocks, FPI propel domestic markets for third consecutive day

Most of the Sensex gains were contributed by Axis Bank, which rose by 4.3 per cent; HDFC Bank, which rose by 0.7 per cent; and Bharti Airtel, which rose by 1.35 per cent

Indian equity benchmarks rebounded from earlier losses to close on Wednesday with modest gains, driven by strong performance of banking stocks and sustained buying by foreign portfolio investors (FPIs).

 

The Sensex, which initially fell by approximately 191 points, managed to recover and closed the session at 77,044, marking an increase of 309 points, or 0.4 per cent. The Nifty 50 index also ended on a positive note, finishing the session at 23,437, up 109 points, or 0.5 per cent.

 

Over the past three trading sessions, the Sensex has seen a cumulative gain of 4.3 per cent while the Nifty has risen by 4.6 per cent. The total market capitalisation of BSE-listed companies increased by ₹2.7 trillion, reaching ₹415 trillion on Wednesday. The total market capitalisation rose by ₹21.2 trillion in the last three sessions. The upward trend in Indian equities has been fuelled by US reciprocal tariff pause and forecast about an above-normal monsoon season.

 

 

On Wednesday, FPIs were net buyers of ₹3,936 crore while domestic institutions were net sellers of ₹2,513 crore.

 

The gains over the past three sessions have positioned the Sensex and the Nifty as the first major equity market indices to fully recover from the losses incurred due to the tariff blitz announced by US President Donald Trump earlier this month.

 

This three-day rally follows Trump's announcement of a 90-day pause on additional tariffs for nations engaged in trade negotiations while maintaining a 10 per cent baseline import duty. Exemptions were also extended to smartphones, computers, and other electronic items.

 

Most of the Sensex gains were contributed by Axis Bank, which rose by 4.3 per cent, HDFC Bank (up 0.7 per cent), and Bharti Airtel (up 1.35 per cent).

 

IndusInd Bank surged over 7 per cent and emerged as the best-performing Sensex stock on Wednesday, following its disclosure the previous day that the impact of discrepancies in its derivatives portfolio, ascertained by external agency PwC, would be marginally lower than its findings in the internal review. The Bank Nifty index rose 1.41 per cent.

 

Global equities slumped after the Trump administration imposed new restrictions on Nvidia Corp's chip exports to China amid deepening trade tensions. The dollar index declined by 0.5 per cent and was trading at 99.6. Gold, meanwhile, hit a new high at $3,318 per ounce. Brent crude rose 0.4 per cent and was trading at $ 65.8.

 

"Amidst global weakness, the Indian market exhibited a mild positive sentiment in anticipation that the trade fight between the US and China will not harm but benefit India, and March's CPI inflation, which is at a five-year low, is indicative of further rate cuts in the near future. Domestically, the Q4FY25 earnings season has started on a weak note. Overall expectations remain subdued, suggesting potential profit-booking at higher levels," said Vinod Nair, head of research of Geojit Financial Services.

 

The market breadth was strong, with 2,594 stocks advancing and 1,364 declining.

 

"With the Nifty now above the 23,400 hurdle, a sustained move could pave the way for a test of the previous swing high around 23,800. Traders are advised to align their positions accordingly, focusing on the sectors that continue to outperform (sic)," said Ajit Mishra, SVP research of Religare Broking.