Equity markets witnessed a second consecutive day of gains on Wednesday, as the Sensex surged 631.55 points to close at 76,532.96 and the Nifty climbed 205.85 points to end at 23,163.10. Investors were eagerly anticipating the U.S. Federal Reserve’s policy decision and the upcoming Union Budget.
One of the day’s highlights was the significant rebound in the broader markets, with the Nifty Smallcap 100 index registering its highest single-day gain since June 5, 2024, rising by 3.32 percent. Meanwhile, the BSE Midcap index advanced by 2.5 percent, and the Smallcap index saw a gain of 3.2 percent.
Market breadth was notably positive, with 2,978 stocks advancing compared to 1,011 declining on the BSE. Additionally, fifty-two stocks hit their 52-week highs while 149 touched their 52-week lows. Furthermore, eight stocks hit the upper circuit, and six hit the lower circuit.
On the NSE, top gainers included Shriram Finance, which saw a 3.98 percent rise, followed by BEL (3.72 percent), Tata Motors (3.65 percent), SBI Life (3.27 percent), and Trent (3.11 percent). Meanwhile, major losers included ITC Hotels (-3.53 percent), Maruti (-1.41 percent), Asian Paints (-0.81 percent), Bharti Airtel (-0.78 percent), and Britannia (-0.60 percent).
Technical analysts provided their insights, with Nagaraj Shetti from HDFC Securities noting the formation of a long bull candle on the daily chart, indicating strength in the upside bounce. Hrishikesh Yedve from Asit C. Mehta Investment Interrmediates Ltd. highlighted a possible short-term pullback towards 23,360 and 23,500 as long as the index holds above 22,780. Nandish Shah from HDFC Securities pointed out that Nifty closed above its 10 DMA for the first time since January 3, 2025.
Market experts suggested that the Indian market exhibited resilience ahead of the Union Budget, with expectations of measures to stimulate consumption and job creation. Small and mid-cap stocks experienced a relief rally, while key index valuations were trading at a 5-year average.
Sectoral performance was strong across the board, with Defense, IT, Media, and Realty indices rallying over 2 percent. The Nifty Bank index gained 0.61 percent, closing at 49,165.95, while the Financial Services index rose by 1.05 percent to 23,044.95.
Overall, market volatility increased, with the India VIX rising by 2.45 percent to 18.64. Technical analysts remained cautiously optimistic, with Rupak De from LKP Securities pointing out the index’s positioning below the 21EMA.
Gold prices remained stable around $2,760 in Comex and ₹79,500 in MCX, awaiting the Fed’s policy decision. The precious metal faced resistance at ₹81,100 in the domestic market.
In conclusion, despite some cautious optimism among market participants, sustained strength above resistance levels is deemed necessary for a decisive breakout, as indicated by Mandar Bhojane, Equity Research Analyst at Choice Broking. There is a crucial resistance zone between 23,300 and 23,500 according to derivative data.
