The domestic stock market indices settled higher in Wednesday's trade after declining in the previous session. The US Federal Reserve expected rate cut and and hopes of an early India-US trade deal supported the market sentiment.
According to CME’s FedWatch Tool, investors are pricing in a near-certain 25 basis point cut in US interest rates, typically seen as beneficial for emerging markets as it may prompt foreign funds to seek higher returns in countries like India.
The Sensex climbed 368.97 points or 0.44 percent to settle at 84,997.13. During the day, it jumped 477.67 points or 0.56 percent to 85,105.83. The Nifty went up by 117.70 points or 0.45 percent to 26,053.90.
Adani Ports, NTPC, Power Grid, HCL Tech, Tata Steel, Sun Pharma, Trent and Asian Paints were among the major gainers. Bharat Electronics, Eternal, Mahindra & Mahindra and Maruti were among the laggards.
Sectoral indices saw buying led by Oil & Gas, Metal, IT and FMCG, rising up to 2 percent.
Vinod Nair, Head of Research at Geojit Investments, noted "The domestic market ended on a strong note, supported by positive cues from Asian markets and improved clarity on global trade dynamics. Optimism over potential progress in India–US trade talks further lifted sentiment. Oil stocks led the rally as crude prices eased expectations of higher OPEC+ output, while metal stocks advanced amid firm commodity prices and supply constraints. The upcoming Fed decision remains a key event for global markets; although a 25-bps rate cut is widely anticipated, investors will closely track its commentary for further rate cuts, which will guide the future market trajectory."
Broader markets also settled in the green. The Nifty Midcap 100 was up 0.6 percent and the Smallcap 100 gained 0.4 percent.
Foreign institutional investors bought shares worth Rs 10,339.80 crore on Tuesday, the highest single-day purchase since June 26, 2025, after net selling of Rs 55.58 crore on Monday.
“Volatility marked yesterday’s trade, but the key takeaway was strong FII buying, with net inflows lending confidence to the markets,” said Prashanth Tapse, Senior Vice President (Research), Mehta Ltd.
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