Indian markets continued their positive momentum on Wednesday, with the benchmark index Nifty and Sensex gaining about 0.70% each. Hopes of the National Democratic Alliance (NDA) returning to power in Bihar and talks around the India-US trade deal renewed investors’ sentiments.
Optimism over the anticipated resolution of the US government shutdown and growing expectations of interest rate cuts by the Federal Reserve also bolstered the sentiments. The BSE Sensex rallied 595.19 points, or 0.7%, to settle at 84,466.51 while the NSE Nifty50 climbed 180.85 points, or 0.70%, to close at 25,875.80.
“Investor sentiment remained upbeat despite heightened volatility ahead of the Bihar election results. On the global front, optimism grew as the US Senate made progress toward ending the government shutdown, while expectations of a possible Federal Reserve rate cut next month further boosted risk appetite,” said Ashika Institutional Equities.
Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services, said the gains were supported by the U.S. softening its stand on India over trade tariffs. Additionally, steady Q2 earnings, exit polls in Bihar pointing to an NDA victory, and SIP inflows touching a record high further buoyed sentiments, added Khemka.
Most sectors ended in the green, led by strong buying in information technology stocks. The Nifty IT index surged nearly 2%, marking its third consecutive session of gains, as Trump’s remarks supporting skilled foreign workers improved sentiment around visa policies.
Broader markets also remained firm, with the Nifty Midcap100 and Smallcap100 up 0.8% each.
Khemka added that investors now await key macroeconomic data due on Thursday, including UK GDP, U.S. CPI, and Initial Jobless Claims, along with quarterly results from Eicher Motors, Hero Motocorp, Muthoot Finance, LG Electronics, and Samvardhana Motherson. “We expect markets to maintain their positive bias, supported by the ongoing earnings season, constructive progress on the India–US trade deal, and improving global cues,” he said.
From the Sensex pack, Asian Paints, Tech Mahindra, Tata Consultancy Services, Bajaj Finserv, Adani Ports, HCL Technologies, Bharti Airtel, Infosys, Trent, Reliance Industries, UltraTech Cement, Sun Pharmaceuticals, Eternal, Titan and Bajaj Finance were the gainers.
Asian Paints shares surged more than 6% on Wednesday after the company reported domestic decorative volume growth of 10.9% for the September quarter. Asian Paints' profit increased by 47% year-on-year to Rs 1,018 crore in the reported quarter.