Sensex surges for third day, Nifty near 25,900; midcap index hits record high on upbeat sentiment

Bulls staged a strong rally in trade on November 12.

The benchmark indices Nifty 50 and Sensex staged a strong rally in trade on Wednesday, November 12, as the bulls took over the reins, extending the winning streak to a third straight session.  Sentiments have also turned for the better with news of an India-U.S. trade deal getting finalised soon and the exit polls indicating a decisive victory for the NDA in Bihar.

At close, the Sensex was up 595.19 points or 0.71 percent at 84,466.51, and the Nifty was up 180.85 points or 0.70 percent at 25,875.80. About 2381 shares advanced, 1655 shares declined, and 144 shares unchanged.

Sectoral indices closed largely in the green on Wednesday, led by strong gains in IT (up 2.04 percent) and Auto (up 1.24 percent). Pharma, Healthcare, and Consumer Durables also advanced, reflecting broad-based buying. Among laggards, Realty fell 0.49 percent and Metal slipped 0.16 percent on mild profit-booking. Overall, sentiment stayed upbeat with most sectors posting gains.

On the broader markets front, the midcap and smallcap indices jumped 0.8 percent each, with the Nifty Midcap 100 hitting a fresh record high.

" Global equities rallied on renewed risk appetite, driven by optimism over the anticipated resolution of the U.S. government shutdown and growing expectations of early Fed cuts amid signs of a cooling U.S. labour market. Emerging markets outperformed, reflecting the improvement in global sentiment," said Vinod Nair, Head of Research, Geojit Investments.

He added that Indian indices mirrored this strength, with large-cap stocks leading gains, particularly in the auto, IT, and pharma sectors. Supportive domestic macro fundamentals, including easing CPI and WPI inflation, a strong GDP outlook, and healthy H2 earnings expectations, continue to underpin positive market momentum.

On the technical front, analysts had noted that the Nifty 50 would see a tough fight between bulls and bears at the 25,800 mark, which was earlier pegged as a key resistance level. However, the index has seen a decisive breakout above this mark, which in turn could trigger fresh buying momentum and extend the ongoing rally.

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