Mumbai, Oct 16: Indian equity markets rebounded sharply on Wednesday, buoyed by gains in banking and financial stocks and strong cues from global markets. The BSE Sensex surged 575 points to close at 82,605.43, while the NSE Nifty jumped 178 points, ending above the 25,300 level at 25,323.55.
After two sessions of losses, renewed optimism among investors was visible as broader markets mirrored the rally. Expectations of a potential interest rate cut by the US Federal Reserve later this month provided additional momentum.
Sector & Stock Performance
Banking and financial stocks led the gains, with Bajaj Finance and Bajaj Finserv emerging as top performers on the Sensex. Other key gainers included Asian Paints, Larsen & Toubro, UltraTech Cement, Trent, and Adani Ports.
Meanwhile, select heavyweights like Tata Motors, Infosys, Tech Mahindra, and Axis Bank ended in the red, capping the day’s overall gains.
Global Sentiment Turns Positive
Asian markets registered a strong uptrend, with indices in South Korea, Japan, China, and Hong Kong closing higher. European markets also traded firmly in the green, further supporting bullish sentiment in India.
Investor confidence improved globally following signals from the US Federal Reserve that pointed towards a possible pause or softening in its tightening stance. A potential slowdown in rate hikes or balance sheet reduction is seen as positive for capital flows into emerging markets like India.
Market Overview
The day’s rebound marks a return of risk appetite among investors, following a brief spell of caution. Backed by positive global momentum and strong buying by domestic institutions, Indian indices managed to recover lost ground. The supportive stance of major global central banks, coupled with improved liquidity in domestic markets, is creating a favourable near-term outlook.
At the same time, the market continues to track crude oil prices, currency fluctuations, and foreign fund flows. Brent crude was slightly lower at $62.28 per barrel, offering some comfort on the inflation front.
Institutional Activity
On the institutional side, Foreign Institutional Investors (FIIs) were net sellers to the tune of ₹1,508.53 crore on Tuesday, while Domestic Institutional Investors (DIIs) bought shares worth ₹3,661.13 crore, providing crucial support to the market.
This recovery follows Tuesday’s dip when the Sensex had lost 297 points and the Nifty slipped by 82 points, reflecting broader uncertainty earlier in the week.
Outlook Ahead
With global cues currently positive and investor sentiment stabilising, markets may see continued upward momentum in the short term. However, all eyes remain on upcoming macroeconomic data, global interest rate decisions, and geopolitical developments that could influence market direction in the weeks to come.