Indian equity benchmark indices, Sensex and Nifty, gained points in early trade on Wednesday on buying in blue-chip firms, Reliance Industries, Infosys and Bharti Airtel, amid investor positivity on an India-US trade deal finalisation coming soon.
The 30-share BSE Sensex benchmark increased by 464.66 points, or 0.55 per cent, to 84,335.98 in early trade, while the 50-share NSE Nifty gained 134.70 points, or 0.52 per cent, to 25,829.65.
“Sentiments have turned for the better with news of an India-US trade deal getting finalised soon and the exit polls indicating a decisive victory for the NDA in Bihar. This will strengthen the bulls, but is not good enough for the markets to stage a decisive breakout and sustained rally,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.
Among the Sensex firms, Tata Consultancy Services, Eternal, Bajaj Finserv, Tech Mahindra, Infosys, Bharti Airtel, Bajaj Finance, HCL Technologies, Reliance Industries, Axis Bank, Mahindra & Mahindra, and UltraTech Cement were the gainers.
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Bharat Electronics Ltd, Hindustan Unilever, Maruti Suzuki India, Asian Paints, ITC, Sun Pharmaceuticals, and Trent Ltd were among the laggards.
Vijaykumar said there is room for optimism since GDP growth is robust, but going by the present trends, FIIs are likely to sell again at higher levels.
“From the fundamental perspective, there is room for optimism since GDP growth is robust and earnings growth for FY27 appears bright. Financials, consumption and defense stocks have the potential to lead the next leg of the rally,” he said, adding that so long as the AI trade continues, a sustained reversal of FII money appears unlikely.
Foreign Institutional Investors (FII) offloaded equities worth ₹803.22 crore on Tuesday while Domestic Institutional Investors bought stocks worth ₹2,188.47 crore, according to the exchange data.
“Bulls took charge on Tuesday as Nifty staged a strong comeback, buoyed by exit polls in Bihar predicting a BJP-JD(U) landslide and optimism over a US-India trade deal, possible Fed rate cuts, and hopes of an end to the US shutdown. While sentiment is upbeat, concerns linger over the Delhi bomb blast and FII selling worth ₹803 crore,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
Broader Asian equities were trading on a mixed note, with South Korea’s Kospi and Hong Kong’s Hang Seng trading higher, while Japan’s Nikkei 225 and Shanghai’s SSE Composite index quoting in the negative territory.
The US markets closed largely higher in overnight deals on Tuesday.
Brent crude, the global oil benchmark, declined by 0.23 per cent to USD 65.01 per barrel.
On Tuesday, the 30-share BSE Sensex jumped 335.97 points to settle at 83,871.32, while the NSE Nifty climbed 120.60 points to close at 25,694.95.
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