Sensex up 200 pts from day's low, Nifty reclaims 25,200 as IT, PSU bank stocks rise

Nestle India, Adani Ports, Tech Mahindra, Wipro, and Infosys were the top gainers on the Nifty.

Benchmark indices Nifty and Sensex staged a sharp intraday rebound on July 16, trimming early losses to trade just below the flatline. Gains in IT and PSU bank stocks helped cushion the blow from broader market weakness, as investors treaded cautiously amid renewed US tariff concerns and a lacklustre start to the Q1 earnings season.

At about 11:55 am, the Sensex was down 14.43 points or 0.02 percent at 82,556.48, and the Nifty was down 6.60 points or 0.03 percent at 25,189.20. About 1916 shares advanced, 1505 shares declined, and 127 shares unchanged.

Sectoral indices traded largely positive in early trade on Wednesday, with the India VIX easing 1.39 percent to 11.32, indicating low volatility. Nifty Media led the gains with a 1.20 percent rise, followed by Nifty PSU Bank, which climbed 0.59 percent. Other gainers included Nifty IT, FMCG, Infra, Energy, and Consumer Durables, all posting modest upticks. On the flip side, Nifty Auto and Metal declined by over half a percent, while Pharma and Smallcap 100 also saw mild losses. Broader markets remained mixed, with the Nifty Midcap 100 inching up 0.02 percent.

Among major movers, Coffee Day Enterprises hit 10 percent upper circuit for a second straight session after veteran investor Dolly Khanna picked up a 1.55 percent stake in the company. Khanna held 32.78 lakh shares in the firm, as per the latest shareholding data available on the Bombay Stock Exchange.

Dixon Technologies rose over 3 percent after it signed a binding term sheet to acquire a majority 51 percent stake in Kunshan Q Tech Microelectronics (India) Pvt. Ltd. The move, part of a mix of primary and secondary investments, will give Dixon access to advanced technology and precision manufacturing in camera and fingerprint modules — key components used in smartphones, IoT devices, and automobiles.

ICICI Prudential slipped 3 percent as the company reported a decline in annualised premium equivalent (APE) growth, short-term persistency ratios, and investment income. Brokerages were not impressed by the June quarter results but expressed hope that higher traction in non-linked products could support profitability in the future.

"Nifty has shown signs of recovery after finding support near the 25,000 mark, forming a higher bottom on the daily chart and improving the overall bias. The index continues to hold above the crucial 50-day EMA at 24,900, suggesting underlying strength. With the broader trend still upward, a positive reversal looks likely, with near-term targets seen at 25,500 and 25,700. However, sustained trade above 25,650 will be key to triggering a fresh leg of the rally. Volatility may persist through the month, but holding above the 50EMA support remains critical for the bullish outlook," Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, said.

Nestle India, Adani Ports, Tech Mahindra, Wipro, and Infosys were the top gainers on the Nifty. Laggards on the index included Shriram Finance, Eternal, Hero MotoCorp, Sun Pharma, and Cipla.