Benchmark indices Sensex and Nifty surged in early trade on Wednesday, recovering from the sharp losses in the previous session, as buying in blue-chip stocks lifted investor sentiment. Positive global cues further supported the market.
Sensex jumped 655.84 points or 0.86 percent to 76,680.35, while the broader NSE Nifty climbed 184.3 points or 0.79 percent to 23,350.
Among the top gainers were Tech Mahindra, Infosys, HDFC Bank, Maruti Suzuki, ICICI Bank, Bharti Airtel, Zomato and Adani Ports.
Key Factors Driving the Market Rally
1) Positive Global Cues: Asian markets were mixed, with Shanghai trading in the green, while Hong Kong remained in the red. On Wall Street, the S&P 500 gained 21.22 points or 0.38 percent to close at 5,633.07, while the Nasdaq Composite advanced 150.60 points or 0.87 percent to 17,449.89. The Dow Jones Industrial Average, however, dipped 11.80 points, or 0.03 percent, to 41,989.96.
Markets are closely watching the US tariff announcements, which could impact investor sentiment further. "The element of uncertainty regarding reciprocal tariffs is expected to ease with the tariff declaration today. However, considering past unpredictability in trade policies, volatility may persist," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
2) Value Buying: After recent corrections, large-cap stocks have witnessed fresh buying interest. Heavyweights such as HDFC Bank, Maruti Suzuki, ICICI Bank and leading IT stocks were in focus today.
"We are entering the earnings season and the RBI’s monetary policy decision is also around the corner. While tariffs remain a key factor, multiple other triggers are playing out simultaneously," said Anita Gandhi, Founder and Head of Institutional Business at Arihant Capital Markets told Reuters.
3) Easing Volatility Index (VIX): The India VIX, a measure of market volatility, declined 0.89 percent to 13.66, suggesting reduced fears of market swings.
Technical Outlook
Market analysts see technical support levels holding firm. "The five-day decline from the interim top has now reached the 38 per cent Fibonacci retracement level of the rally from March 4 to March 25. This could be an ideal setup for bulls to stage a recovery towards 24,200," said Anand James, Chief Market Strategist, Geojit Financial Services.
He added that immediate support is seen at 23,137, with further downside limited to 23,050-22,960. "A breach of these levels may not trigger a sharp correction to 21,800 immediately, as 22,730-22,650 remains a strong support zone."
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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