Arresting a three-day decline, equity markets saw a significant recovery on Wednesday, driven by favourable global cues and domestic factors, notably a strong rupee, amid expectations of a possible interest rate cut by the US Federal Reserve.
Asian markets were trading higher, establishing a positive backdrop for Indian equities. Investor sentiment remained cautiously optimistic, buoyed by anticipation of potential interest rate reductions by the US Federal Reserve. Domestically, robust buying interest was noted in sectors such as power, metal, and telecom, with the realty index leading the gains.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, commented, “The up move was driven by some easing in the US-China trade tensions and a rebound in the rupee from recent lows. Additionally, a stable start to the earnings season and rating agencies reaffirming their positive outlook on India helped counter lingering worries regarding global growth and trade issues.”
Mid & Smallcap Indices Surge
The BSE Sensex closed 575.45 points, or 0.70%, higher at 82,605.43, after reaching a high of 82,727.02 during intraday trading. The Nifty 50 gained 178.05 points, or 0.71%, to close at 25,323.55. The midcap and smallcap indices outperformed with gains of 1% and 0.82%, respectively.
“Buying was widespread, marking a complete reversal of the previous day’s selling concentration. Except for Nifty Media, all sectoral indices closed in the green. Leadership was particularly strong in sectors like realty, PSU banks, and metals, which registered the most significant gains,” stated Nandish Shah, Deputy Vice-President at HDFC Securities.
Shares of Bajaj Finance, Nestle India, Bajaj Finserv, Asian Paints, L&T, and Jio Financial led the Nifty 50 gainers, posting increases of 2-5%. Conversely, Infosys emerged as the top loser, followed by Tata Motors, Axis Bank, Tech Mahindra, Titan, and Dr. Reddy’s Lab, with declines ranging from 0.16% to 1.04%.
Market breadth was positive, with 2,393 shares advancing, 1,587 declining, and 152 remaining unchanged on the BSE. Approximately 60 stocks, including Bank of Maharashtra, RBL Bank, Cholamandalam Investment, and Inox Green, reached their 52-week highs, reflecting investor optimism, while 75 stocks, including Bansal Wire, recorded 52-week lows.
Additionally, 69 stocks, including NIBA and Genesys International, hit their upper circuit, while 49 fell to their lower circuit, indicating both aggressive buying and selective profit-booking across sectors.
In the midcap segment, Persistent Systems was the major gainer following a strong Q2 performance, with Prestige Estates, Vodafone Idea, Godfrey Phillips, and Godrej Properties also seeing increases of 2-5%. Conversely, Policy Bazaar, OFSS, Bharti Hexacom, IndusInd Bank, MRF, and Aurobindo Pharma experienced declines of 1-2%.
Smallcap stocks, including Newgen, Ola Electric, IIFL, CGCL, CESC, and Poonawalla, surged by 4-5%, while BLS International, Data Patterns, Shyam Metalics, and Delhivery saw drops of 2-4%.
On the BSE, Bank of Maharashtra, ICICI Lombard, and Persistent Systems topped the gainers’ chart with 7-9% rallies post-Q2 results, whereas Cyient DLM posted a nearly 5% decline. Furthermore, shares of LG Electronics India continued their gaining streak on the second day of trading.
Published on October 15, 2025.
