Sensex up 600 pts, Nifty reclaims 25,600: Positive global cues among key factors behind market rebound

Stock market today news: Sensex, Nifty rise in trade. 

• Sensex jumps over 600 points, Nifty reclaims 25,600 level.
• IT, metal, realty, and auto shares lead market rebound.
• Positive global cues and lower volatility boost sentiment.

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The benchmark equity indices rebounded sharply on Wednesday, with the Sensex surging over 600 points and the Nifty reclaiming the 25,600 level, driven by gains in IT, metal, realty and auto shares amid positive global cues.

At around 10:10 am, the Sensex was trading 613.39 points or 0.75 percent higher at 82,839.31, while the broader Nifty rose 196.85 points or 0.77 percent to 25,621.50.

In the Nifty pack, Infosys, Tech Mahindra and HCL Technologies were among the top gainers, rising up to 2 percent. Dr Reddy's Laboratories and Max Healthcare Institute were among the laggards, falling up to 1 percent.

Market breadth remained positive with 1,936 stocks advancing, 1,141 declining and 169 remaining unchanged.

All the 16 major Nifty sectoral indices were trading in the green. The broader Nifty smallcap100 and Nifty midcap100 rose 0.8% and 0.6%, respectively.

Key factors behind market rise

1) Buying in IT shares: IT stocks rebounded after witnessing a sharp sell-off in the previous session. The Nifty IT index climbed 2.23 percent, emerging as the top-performing sector on the NSE.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said news of Anthropic’s Claude chatbot building partnerships in software and services with IT firms indicates collaboration opportunities for Indian IT companies.

"If the weakness in IT stocks subsides and the segment recovers, the tailwind of FII buying can lift the markets," he added.

2) Positive global cues: Global technology stocks rallied overnight, with the Nasdaq 100 rising over 1 percent after recent volatility linked to concerns over AI-led disruption. Sentiment improved following reports that Anthropic plans to build partnerships around its Claude technology.

Asian markets also opened higher on Wednesday, with gains in Japan, South Korea and Australia supporting investor sentiment.

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3) Decline in volatility: The India VIX declined more than 6 percent to 13.22. A lower VIX indicates easing volatility expectations, which generally supports risk appetite in equities.

4) Rupee rises: The rupee appreciated 6 paise to 90.89 against the US dollar, aided by a weaker greenback and firm domestic equities.

At the interbank foreign exchange, the rupee opened at 90.94 against the dollar before rising to 90.89, up 6 paise from its previous close. However, a sharp rise in global crude oil prices and FII outflows capped further gains, forex traders said.

On Tuesday, the Sensex had plunged 1,068.74 points or 1.28 percent to settle at 82,225.92, while the Nifty declined 288.35 points or 1.12 percent to close at 25,424.65.

Technical outlook

"Although a short-term pullback cannot be ruled out, it is unlikely for the benchmark Nifty to sustain at higher levels with 25,200 and 25,800 levels acting as immediate support and resistance," said Nilesh Jain, vice president and head of technical and derivatives research at Centrum Finverse.

Anand James, Chief Market Strategist at Geojit Investments, said that while a collapse was ruled out, 25,300 had been pencilled in as the lower range.

"This being intact despite falls; an upswing appears as the likely play for today. We will look for consistent trades above 25,670 to confirm strength, aiming 25,900 initially. But inability to float above 25,530 could signal lack of upside momentum,” he said.

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