Sensex surges 500 pts, Nifty tests 25,200 amid positive global cues; IT, oil & gas stocks lead rally

Experts say that much of the strength can be attributed to foreign institutional investors (FIIs), who turned net buyers during periods of uncertainty. However, a pattern has emerged—FIIs tend to sell once the dust settles, as seen in the latest session.

"In contrast, domestic institutional investors (DIIs) have remained consistent buyers, supported by steady inflows into mutual funds. This ongoing domestic support is expected to cushion the market even if FIIs turn cautious due to valuation concerns," V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited said.

Sectoral indices opened mostly higher on Wednesday, led by gains in Nifty Consumer Durables, which rose 0.97 percent, and Nifty Infrastructure, up 0.75 percent. Nifty IT, Oil & Gas, and Metal also posted solid gains of around 0.70–0.75 percent, while Energy, Pharma, Auto, and FMCG added between 0.40–0.58 percent. Nifty PSU Bank gained 0.43 percent, while Nifty Private Bank was the only notable laggard, slipping 0.05 percent. Meanwhile, India VIX fell 2.13 percent, signalling a drop in market volatility.

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As for individual stocks, PTC Industries slipped over a percent shortly after opening 3 percent higher even as its subsidiary Aerolloy Technologies signed a strategic MoU with French aerospace giant Safran Aircraft Engines to jointly manufacture components and materials for military aircraft engines.

JSW Energy rose over a percent after Jefferies maintained its buy rating on the counter, citing strong levers for growth in the coming quarters. The international brokerage anticipates an upside potential of 39 percent from the last closing price of Rs 505 on the NSE. The brokerage believes the company's ‘Strategy 3.0’ will fuel a fourfold jump in reported EBITDA between FY25 and FY30.

MCX shares rose over 4 percent as UBS hiked target Rs 10,000, says expectations 'ahead of consensus' amid favourable market dynamics and new product launches. Over the past one year, MCX shares have rallied over 100 percent, more than doubling investors' capital.

A close above 25,200 - 25,250 is crucial to unlock further upside towards 25,500. On the downside, strong support at 24,700–24,750 continues to cushion declines, keeping the broader trend constructive. The index also remains above its 10- and 20-day exponential moving averages, reinforcing the bullish setup. However, the emergence of a bearish candlestick with an upper shadow on the daily chart signals persistent selling at higher levels. Until the index breaks out of this range, directional clarity may remain elusive. A breach below 24,700 could weaken sentiment, but dips are likely to find buying support for now.

Titan Company, Infosys, Tata Consumer Products, Nestle India, and HCL Tech were the top gainers on the Nifty. Laggards on the index included Kotak Mahindra Bank, Bharat Electronics, Axis Bank, Eicher Motors, and SBI Life Insurance Company.

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