Sensex rises 513 points as IT stocks lift Indian markets

Indian equity markets regained momentum on Wednesday as strong buying in major technology companies helped the benchmark indices recover from the previous session’s decline. The Sensex rose by more than 500 points and the Nifty breached the 26,000 mark, supported by renewed interest from domestic institutional investors and expectations of progress in trade negotiations between India and the United States.

The 30-share Sensex closed 513 points higher at 85,186, after briefly touching an intraday high of 85,236. The broader Nifty index ended at 26,052, marking a rise of 142 points. According to exchange data, domestic institutional investors were net buyers, purchasing stocks worth more than 6,000 crore rupees. Foreign institutional investors continued to exit Indian equities, selling over 700 crore rupees on Tuesday.

IT sector leads the rally

A surge in technology stocks was the primary driver of Wednesday’s gains. Shares of HCL Technologies, Infosys and Tata Consultancy Services were among the top performers, aided partly by corporate moves such as Infosys’ recently announced share buy-back programme. Analysts said the company’s actions boosted confidence across the wider IT sector, even as other segments of the market showed limited strength.

Consumer and pharmaceutical companies, including Hindustan Unilever and Sun Pharma, also contributed to the upward movement. However, transport, automotive and finance stocks lagged. Shares of Tata Motors Passenger Vehicles, Maruti Suzuki, Adani Ports and Bajaj Finance ended lower, reflecting a broader lack of support outside the IT sector.

Cautious trading pattern persists

Market analysts described the session as largely restrained, despite the final upward swing. The Nifty spent much of the day hovering near 25,900 before gaining momentum toward the close. Earlier in the day, the Sensex had slipped in early trade before recovering modestly in the afternoon.

According to analysts quoted by domestic media, the muted start reflected mixed global cues. Technology stocks overseas faced pressure, and concerns about the timing and pace of global interest rate cuts kept investors cautious. Many traders opted to stay on the sidelines, awaiting clearer signals from economic data releases and government policy decisions.

Commerce and Industry Minister Piyush Goyal added to market speculation on Tuesday by hinting at progress in the long-discussed India-US trade agreement. “You will hear good news once the deal is fair, equitable and balanced,” he said, though no timeline was provided. The expectation of a potential breakthrough helped support sentiment during Wednesday’s session.

Uneven global trends

Major Asian markets delivered mixed performances. Indices in South Korea, Japan and Hong Kong ended lower, while China’s SSE Composite Index closed in positive territory. European markets were trading mostly lower at mid-session, reflecting concerns about global growth and geopolitical pressures. The United States markets had ended Tuesday in negative territory.

Brent crude prices declined slightly to around 64.64 US dollars per barrel, contributing to a neutral backdrop for energy-related stocks.

Previous session and overall outlook

The recovery on Wednesday followed losses in the previous session, when the Sensex fell 277 points and the Nifty slipped by more than 100 points. Analysts suggested that the recent volatility reflects a consolidation phase after a strong run earlier in the month.

Corporate earnings have generally been positive, supported by moderating inflation and improved consumer demand. These factors have helped maintain medium-term optimism, though experts caution that markets may remain range-bound until new catalysts emerge.

Context: India’s markets respond to global signals

India’s stock markets, like many across Asia, are navigating a period of uncertainty driven by global economic developments. Shifts in US interest rate policy, changing commodity prices and ongoing geopolitical tensions continue to influence investor behaviour. The anticipated India-US trade agreement has added another variable, with markets reacting to even modest hints of progress.

While Wednesday’s gains underscore the resilience of key sectors such as technology and consumer goods, analysts note that broad-based participation will be necessary for a sustained upward trend. Investors are now looking toward global policy updates and domestic macroeconomic indicators for direction in the coming days.