The equity benchmarks recovered on Wednesday, with the Sensex and Nifty trading higher after a brief pause in the previous session, supported mainly by buying in information technology stocks.
At around 2:45 p.m., the Sensex was up 558.94 points or 0.66 percent to 85,231.96, while the broader Nifty advanced to 26,062.40, up 152.35 points or 0.59 percent.
Infosys, HCL Technologies and Max Healthcare Institute were among the top gainers in the Nifty50 pack, rising up to 3 percent, while Tata Motors Passenger Vehicles and Coal India were among major laggards, declining up to 2 percent.
Key factors behind market rise
1) Strong buying in IT shares: Strong interest in IT stocks drove the upside, with the Nifty IT index gaining more than 2 percent. The rise was led by Infosys after the company said its share buyback worth about Rs 18,000 crore will begin on November 20.
2) India-US trade deal expectations: Investor sentiment was also supported by expectations around the proposed India–US trade pact. Commerce and Industry Minister Piyush Goyal on Tuesday said an announcement will be made only when both sides reach a “fair, equitable and balanced” agreement, adding that “you will hear good news” once that happens.
3) Shift from AI-heavy bets: Analysts said global investors appear to be trimming exposure to AI-focused stocks and redirecting funds to emerging markets, including India.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said an “anti-AI trade” is unfolding globally, with concerns around stretched valuations. He noted that the Nasdaq has retreated from recent highs, adding that India’s relative outperformance against markets such as South Korea and Taiwan reflects this trend.
4) Volatility eases: The India VIX declined over 2 percent to 11.84, indicating reduced volatility in the market.
Technical view
Anand James, Chief Market Strategist at Geojit Financial Services, said the dips towards 25,900 and the subsequent rebounds were in line with expectations but did not provide fresh directional cues. He said the 26,130–25,840 zone remains a crucial range, adding that a move above 26,022 could signal strength, while bulls may look to regroup in the 25,840–25,822 region.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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