Indian equity benchmarks continued their upward momentum for the third consecutive session on Wednesday, with the Sensex and Nifty 50 edging higher despite weak cues from global markets.
Gains were led by banking stocks, particularly public sector banks, as well as FMCG and oil & gas sectors, as investors pinned hopes on another interest rate cut from the Reserve Bank of India.
Defying a weak global market trend, the 30-share BSE Sensex climbed 309.40 points or 0.40 per cent to settle at a two-week high of 77,044.29 in a volatile session. After a weak start, the index moved between gains and losses during the session. It hit a high of 77,110.23 and a low of 76,543.77, gyrating 566.46 points. The NSE Nifty rallied 108.65 points or 0.47 per cent to 23,437.20.
Much of the optimism in Wednesday’s trade came from expectations that a softer inflation reading could prompt further monetary easing. India’s retail inflation for March touched a multi-year low, which, coupled with the Indian Meteorological Department’s forecast of an above-normal monsoon, boosted investor sentiment.
Banking stocks were the biggest contributors to the rally. The Nifty PSU Bank index surged 2.46%, outperforming its private-sector counterparts. Market participants are increasingly factoring in a possible rate cut, with the RBI having already slashed the benchmark repo rate to 6% through two consecutive 25-basis-point reductions.
FMCG, oil & gas, media, realty, and consumer durables also provided strong support to the rally, ending the session with modest to healthy gains. However, not all sectors participated in the upmove.
The Nifty Auto index declined 0.37% after a short-lived rebound, amid rising trade tensions globally. The Nifty Pharma index also slipped 0.18%.
Among individual stocks, JBM Auto, Engineers India, Gujarat Mineral Development Corporation, NTPC Green Energy, and Olectra Greentech posted significant gains, with over 4% rise by the end of the session. In total, 23 constituents of the Nifty 500 ended with similar strength.
On the global front, geopolitical tensions continued to escalate. U.S. President Donald Trump raised tariffs on Chinese goods by an additional 100%, taking the total to 245%. In retaliation, China imposed 125% tariffs on American products and halted the export of key minerals.
These moves have raised concerns across global markets, although India’s relatively insulated position from the immediate fallout has provided a temporary cushion.
European Union and U.S. trade talks failed to produce a breakthrough this week, and most of the existing tariffs on the bloc remain in place. Meanwhile, Japan’s top negotiator is expected in Washington from April 16–18 to kick off formal trade negotiations.
Back home, India and the U.S. have agreed to advance bilateral trade relations, as confirmed by the Indian trade secretary. Both sides have signed the terms of reference for the first phase of a new trade agreement, signalling growing commercial ties despite global protectionism.
In Asia, Chinese and Hong Kong equities came under pressure, even though China reported better-than-expected GDP growth for Q1 2025. Markets remain cautious about the future, as the rise in U.S. tariffs is expected to dent China’s export momentum.
Elsewhere, heightened global uncertainty and central bank gold buying drove prices of the yellow metal to a fresh record high of $3,316 per troy ounce. So far in 2025, gold has gained 26%, making it one of the top-performing asset classes.
Commenting on the day’s performance, Vinod Nair, Head of Research at Geojit Financial Services, noted that Indian equities showed resilience even as global markets faced pressure.
“Amid global weakness, the Indian market exhibited a mild positive sentiment in anticipation that the trade fight between the U.S. and China will not harm but rather benefit India,” he said.
Nair also flagged concerns over the start of the Q4 FY25 earnings season, which he described as tepid. “Overall expectations remain subdued, suggesting potential profit booking at higher levels,” he added.
Follow us
