The stock market indices closed higher on Wednesday, driven by a strong performance in IT stocks, despite broader market decline. The BSE Sensex ended at 76,404.99, up 566.63 points or 0.75%, while the Nifty 50 finished at 23,155.35, gaining 130.70 points or 0.57%.
Large-cap stocks outperformed small-cap stocks, with the Nifty Midcap Select falling 0.79% to 11,918.40 and the Nifty Next 50 declining 0.85% to 62,865.60. The market breadth was negative, with 2,802 declining stocks against 1,142 advances on the BSE, while 115 remained unchanged.
IT stocks led the gains, with the sector index rising over 2%. Wipro was the top gainer, surging 3.87%, followed by Infosys (3.02%), TCS (2.88%), Tech Mahindra (2.36%), and HDFC Bank (1.80%). On the downside, Bharat Electronics fell 3.01%, followed by Tata Motors (-2.16%), Trent (-1.95%), Power Grid (-1.31%), and Axis Bank (-1.09%).
“The benchmark indices rebounded amidst heightened volatility following better-than-expected results from a major private bank. The IT sector led gains, while mid and small-cap stocks continued to underperform due to valuation concerns,” said Vinod Nair, Head of Research, Geojit Financial Services.
In the currency market, the Indian rupee gained strength, closing at 86.29 against the dollar, supported by weakness in the dollar index. The gold market saw movement, with domestic MCX gold posting gains of ₹300 or 0.38%.
The technical outlook suggests continued volatility. “Though Nifty closed higher on Wednesday, the overall market breadth deteriorated, and the negative chart pattern remains intact,” noted Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Trading volumes on the NSE cash market decreased by 3% compared to the previous day. The market witnessed 81 stocks hitting 52-week highs, while 155 touched their 52-week lows. Nine stocks hit the upper circuit, while three reached the lower circuit.
Devarsh Vakil, Head of Prime Research at HDFC Securities, observed, “After yesterday’s drubbing, Nifty saw a pullback of 136 points, closing at 23160. It was a volatile session that eventually ended in the green, led by gains in heavyweight sectors such as IT and banking.”
Looking ahead, market experts suggest that while news of potential lower US tariffs on China may provide temporary relief, underlying concerns persist. The Nifty Bank index gained 0.32% to close at 48,724.40, while the Nifty Financial Services index rose 0.45% to 22,650.40, indicating steady performance in the financial sector despite overall market volatility.
