Value buying returned to Dalal Street on Wednesday, helping benchmark indices recover after the previous session's sharp sell-off. While renewed tensions in West Asia and higher crude oil prices limited the rally, optimism over the June quarter earnings season and domestic economic fundamentals supported sentiment.
The Sensex gained 238.32 points (0.31 percent) to close at 76,741.82, while the NSE Nifty 50 advanced 81 points (0.34 percent) to finish at 23,962.80.
The broader market outperformed the benchmarks, with investors adding more than ₹5 lakh crore in market wealth during the session.
The total market capitalisation of BSE-listed companies climbed to about ₹476.4 lakh crore from ₹471.2 lakh crore in the previous session, resulting in a one-day increase of over ₹5 lakh crore in investor wealth.
Buying interest was stronger in mid cap and small cap stocks.
Nifty Midcap 100 rose 1.38 percent
Nifty Smallcap 100 climbed 1.80 percent
Several factors helped equities recover after Tuesday's steep decline.
Value buying emerged after the sharp correction.
Investors shifted focus to the June quarter earnings season.
Expectations of healthy domestic economic growth supported sentiment.
Improved monsoon conditions boosted optimism for the second half of the year.
At the same time, escalating hostilities between the US and Iran and the rise in crude oil prices prevented a stronger rally.
The market's immediate attention has turned to the corporate earnings season, with Tata Consultancy Services (TCS) scheduled to announce its June quarter results after market hours. Investors will closely watch management commentary for clues on demand, margins and the outlook for the IT sector.
Among Sensex stocks, Bharti Airtel, HDFC Bank and Sun Pharma provided the biggest boost to the index.
Infosys, Axis Bank and Maruti Suzuki were among the major drags.
The biggest gainers in the Nifty 50 included:
Sun Pharma
Bharti Airtel
Bajaj Finserv
InterGlobe Aviation (IndiGo)
Eternal
These stocks gained between 2 percent and 3 percent.
The main laggards were:
Dr Reddy's Laboratories
Maruti Suzuki
ONGC
Infosys
Most sectoral indices ended in positive territory.
Nifty Realty: up 3.54 percent
Nifty Media: up 2.09 percent
Nifty Consumer Durables: up 1.68 percent
Nifty PSU Bank: up 1.62 percent
Nifty Healthcare: up 1 percent
Nifty Bank: up 0.90 percent
Despite persistent geopolitical uncertainty, domestic equities displayed resilience as investors looked beyond short-term volatility and positioned themselves ahead of the earnings season. However, movements in crude oil prices, developments in West Asia and global central bank signals are likely to remain key drivers of market sentiment in the coming sessions.
Sensex: 76,741.82 (+238.32 points, +0.31 percent) • Nifty 50: 23,962.80 (+81.00 points, +0.34 percent) • Nifty Midcap 100: +1.38 percent • Nifty Smallcap 100: +1.80 percent • Nifty Bank: +0.90 percent • India VIX: Ended lower • Market capitalisation (BSE): ₹476.4 lakh crore (up over ₹5 lakh crore).
