CHENNAI: Indian equity markets ended Wednesday’s session on a firm note, shaking off early hesitation to close solidly higher as buying interest emerged in select heavyweight stocks and cyclical sectors. Benchmark indices spent much of the morning trading in a narrow range amid mixed global cues, but sentiment improved steadily through the second half of the session, allowing the market to finish near the day’s highs.
The BSE Sensex advanced by close to 300 points by the closing bell, while the NSE Nifty settled comfortably above the 25,800 mark, extending gains for a third consecutive session. The recovery from intraday lows reflected underlying resilience in the market, with investors selectively adding exposure rather than engaging in broad-based risk-taking. Market participants described the tone as cautiously positive, marked by rotation rather than aggressive buying across the board.
Sectoral performance was uneven, with metals, public sector banks and select industrial stocks providing the main support to the indices. These segments benefited from renewed interest in economically sensitive names and expectations of steady domestic demand. PSU banking stocks, in particular, saw buying on hopes of sustained credit growth and stable asset quality, helping offset weakness elsewhere in the market.
In contrast, information technology stocks remained under pressure, acting as a drag on the benchmarks. Continued concerns over global technology spending and cautious outlooks from overseas clients weighed on investor sentiment in the IT space, leading to profit-taking and fresh selling in several frontline names. The divergence between IT and cyclical sectors underscored the ongoing shift in investor preference towards value and domestically oriented themes.
The broader market mirrored the positive bias seen in the benchmarks, with mid-cap and small-cap stocks also closing higher, though gains were relatively modest. This suggested that participation was reasonably healthy but still selective, as investors remained mindful of valuations after recent rallies. Traders noted that stock-specific action dominated the session, with earnings expectations and sector-specific cues driving price movements.
Currency movements provided a relatively stable backdrop for equities. The rupee ended the day nearly unchanged against the US dollar, trading in a narrow range as importer demand was balanced by exporter flows and intermittent central bank support. The lack of sharp currency swings helped keep volatility in check and allowed equity investors to focus on domestic factors.
Market analysts say there is sustained buying interest in select heavyweights.
"The market ended the session on Wednesday on a mildly positive note, as strength in banking, metal, and FMCG stocks provided a steady underpinning and helped counterbalance sharp selling in the IT sector. The resilience in these heavyweight segments lent stability to the indices despite sector-specific pressure. Persistent DII inflows continued to offer strong structural support, cushioning volatility and reinforcing investor confidence amid mixed global cues."
According to Hariprasad K, a SEBI-registered research analyst and Founder, Livelong Wealth, the Nifty 50 extended its winning streak, closing higher for the third consecutive session, underscoring sustained buying interest in select heavyweights and the broader market’s underlying resilience.
He added that the sectoral divergence however remained evident. "IT stocks continued to face notable selling pressure, with the Nifty IT index declining 2.5%. The weakness followed global developments, particularly after Anthropic introduced its advanced Claude Sonnet 4.6 model, sparking concerns around evolving competitive dynamics in the technology landscape. The persistent downtrend in IT capped broader upside momentum and kept sentiment within the sector cautious," Haripsad said.
Meanwhile, the India VIX eased further to 12.39, reflecting a continued moderation in volatility expectations. Softer VIX levels indicate improving short-term stability and reduced hedging intensity, thereby supporting the market’s gradual upward bias despite pockets of sector-specific weakness, he added.
Analysts, however, say that the near-term outlook will continue to hinge on global developments, corporate earnings cues and signals from macroeconomic data, with stock selection expected to remain critical in the days ahead.