The Indian benchmark indices opened higher on Wednesday, fueled by encouraging developments in US-India trade talks and positive global cues overnight.
US President Donald Trump’s efforts to strengthen India-US relations, along with Prime Minister Narendra Modi’s favorable response, provided a supportive signal for the Indian market.
During early morning trading, the Sensex surged 334 points, or 0.41 per cent, to 81,435, and the Nifty was higher by 106 points, or 0.43 per cent, at 24,975.
Broader indices also reported strong gains, with Nifty Midcap 100 increasing 0.73 per cent and the Nifty Small Cap 100 increasing 0.71 per cent.
Among Nifty members, Larsen and Toubro, Kotak Mahindra, Dr. Reddy's Labs, and TCS paced the advance, while Hero Motocorp, Maruti Suzuki, Tata Steel, and Hindalco were the top laggards.
Sector-wise, Nifty IT was the best gainer, rising 1.88 per cent. Nifty PSU Bank and Nifty Realty also rose sharply, while Nifty Auto (down 0.33 per cent) and Nifty Consumer Durables continued to be in the negative.
On Tuesday, the Nifty tested the resistance of the 24,900 level for the second straight day. The index created a small green candle with an extended lower shadow on the daily chart, pointing to continuous consolidation and intraday volatility.
"Nifty extended its upward movement yesterday, advancing for the fifth straight session and settling at two-week high. By ending above 24791, Nifty was able to regain its level above 50 DEMA. The index has now convincingly overcome its 5, 10, 20, and 50-day DMAs, which is a bullish indication on short-term charts," mentioned Devarsh Vakil, Head of Prime Research at HDFC Securities.
Market analysts noted that there is still strong buying interest at lower levels, while 24,900–25,000 remains a tough barrier. Near-term support is at 24,620, and they noted that until the index is below 25,000, there might still be some consolidation or slight weakness.
US markets climbed overnight, with the Dow Jones Industrial Average climbing 0.43 per cent, the Nasdaq increasing 0.37 per cent, and the S&P 500 rising 0.27 per cent. The turnaround was led by hopes of Federal Reserve interest rate cuts on the back of a sharp down revision in US employment data.
Asian bourses also started firm in the green. China's Shanghai index rose 0.17 per cent, Shenzhen went up by 0.24 per cent, Japan's Nikkei increased by 0.6 per cent, Hong Kong's Hang Seng went up by 0.98 per cent, and South Korea's Kospi increased by 1.55 per cent.
On Tuesday, foreign institutional investors (FIIs) broke their 11-day selling spree by buying equities amounting to Rs 2,050 crore, while domestic institutional investors (DIIs) net bought shares amounting to Rs 83 crore.
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