The equity benchmark indices settled higher on Wednesday, tracking firm global cues and expectations of a US Federal Reserve rate cut, while strong foreign fund inflows also supported sentiment.
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 Enterprises, Adani Ports and Special Economic Zone, NTPC, Power Grid Corporation of India and JSW Steel were among the top gainers in the Nifty pack, rising up to 4 percent.
Key factors behind market rise
1) India-US trade deal hopes: Deal-making signals from the US lifted investors’ mood. US President Donald Trump said he had "great respect" for Prime Minister Narendra Modi and indicated that a trade agreement with India could be finalised soon. Hopes of progress on bilateral trade talks helped boost domestic equities.
Donald Trump hints at trade deal with India soon, says 'have great respect for PM Modi'
2) US Fed rate cut expectations: Market participants remained focused on the Federal Reserve’s policy outcome due later in the day. 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.
"Globally, stock markets continue to be bullish, aided by the sustained uptrend in the US. The market is likely to get another positive news from the Fed, which is expected to cut rates by 25 bps," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He added that commentary on quantitative tightening would also be closely watched.
3) Strong FII buying: Foreign Institutional Investors (FIIs) bought shares worth Rs 10,339.80 crore on Tuesday, the highest single-day purchase since June 26, 2025, after marginal 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.
4) Positive global cues: Asian markets were mostly higher, with South Korea’s Kospi, Japan’s Nikkei 225 and Shanghai’s SSE Composite trading in the green. US equities had ended positive in the previous session.
5) Crude declines: Brent crude was down 0.08 percent at USD 64.35 a barrel. Lower crude prices are seen as favourable for India, which is a major oil importer, and help in easing inflationary pressures.
On the technical front, Anand James, Chief Market Strategist at Geojit Financial Services, said Nifty’s sharp pullback after briefly moving above 26,000 caused some nervousness, but the close formed a doji pattern, indicating the absence of strong bearish sentiment.
"As long as Nifty stays above 25,900, renewed attempts to push higher may continue, with eyes on 26,186–26,250 levels," he said.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
