Indian equities surged on Wednesday with a broad-based rally, as bargain hunters returned to IT and financials ahead of the US Federal Reserve decision. Both benchmarks logged their best single-day gains in over a week, shrugging off fresh geopolitical noise from the Middle East.
Nifty 50, Sensex Stage Comeback: What Drove The Rally?
The street ended firmly in the green.
– NIFTY 50: 24,250.20, up 264.85 points or 1.10%. The index opened at 24,176.65, hit a day’s high of 24,283.55 and low of 24,136.75.
– BSE SENSEX: 77,654.60, up 888.68 points or 1.16%. It opened at 77,423.77 and touched 77,765.49 during the session.
The rally began at the opening bell itself. GIFT Nifty futures had signalled a positive start as Asian markets rebounded. By 10:46 AM IST, Sensex was already up 800 pts and Nifty had topped 24,200.
Dealers said three factors powered the move:
1. IT comeback: Nifty IT surged nearly 3% intraday and has climbed almost 10% in a week. Tech names led gains as US earnings season kept sentiment upbeat.
2. Easing crude: After a spike on Iran-US tensions, oil cooled. Brent had traded below $93 earlier this week, giving relief to oil-sensitive sectors.
3. Fed hope: Investors tracked Asian markets and eyed the US Fed’s policy decision due later today, with consensus expecting rates to hold at 3.75%.
“Nifty has reclaimed 24,000 decisively. The tone is constructive but volumes need to follow,” said a Mumbai dealer. The previous close was 23,985.35 for Nifty and 76,765.92 for Sensex.
SectoralHeatmap: Tech Shines, Banks Mixed
IT was the undisputed leader. The index climbed on hopes that US tech earnings and a possible dovish tilt from the Fed will revive FPI flows into Indian software. Sun Pharma also found favour after Bajaj Broking flagged 4 positive chart cues.
Financials saw stock-specific action. Tata Capital jumped 6% post Q1 as MOFSL backed AUM-led growth and saw 10% upside. On the flip side, banks were range-bound ahead of earnings. Key Q1 results lined up this week include Dabur on July 29, and M&M, Exide on July 30.
Other buzz:
– L&T secured a major EPC order for crude export infrastructure from Kuwait Oil Company.
– Adani Ports Q1 profit rose 9% to Rs 3,620 cr.
– ACME Solar raised Rs 3,404.6 cr project funding for a 250 MW FDRE project.
– Manipal Health Enterprises IPO opened today with issue size of Rs 9,275.22 cr.
Block deals kept midcaps active. Go Digit saw 0.62% equity change hands worth Rs 139 cr. Nova Global bought 0.67% in Asian Granito.
Geopolitics Flashpoint: Oil Spikes Then Settles
Markets had to contend with renewed US-Iran tensions mid-week. US
