Benchmark stock market indices extended their gains for the third straight trading session on Wednesday, reflecting improved investor sentiment on Dalal Street. The rally comes amid optimism following the India-US trade deal and encouraging third-quarter corporate earnings.
As of 9:28 am, the S&P BSE Sensex rose 71.22 points to 84,345.14, while the NSE Nifty50 gained 44.90 points to 25,980.05. The positive opening signals continued strength in the domestic equity markets.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, highlighted two key trends supporting the ongoing mild rally. First, he noted that the rally is broad-based, with strong participation from mid-cap and small-cap stocks. The appreciation in these segments has boosted retail investor portfolios and increased retail participation in the market.
Second, Vijayakumar pointed out that sustained foreign institutional investor (FII) selling, which had been a major drag on the market, appears to have halted. FIIs have turned buyers in five of the last six trading sessions. While this does not necessarily signal a complete reversal in FII strategy, it suggests that the heavy selling phase may be over.
Among Sensex gainers, Mahindra and Mahindra Ltd led the pack with a 2.03% rise. Titan Company Ltd gained 1.42%, Maruti Suzuki India Ltd advanced 1.04%, State Bank of India Ltd added 0.41%, and HDFC Bank Ltd edged up 0.26%.
On the losing side, HCL Technologies Ltd fell 1.20%, marking the sharpest decline among major stocks. Trent Ltd slipped 0.91%, Tata Consultancy Services Ltd dropped 0.88%, ITC Ltd declined 0.59%, and Infosys Ltd eased 0.57%.
Vijayakumar also noted that the nearly 10% depreciation in the US dollar over the past year has eroded foreign investors’ gains in the US markets. This may prompt FIIs to explore opportunities outside the US, including India, in the coming year. Additionally, rupee stability and expectations of appreciation could further encourage foreign inflows.
Looking ahead, improving earnings growth prospects for FY27 and India’s strong macroeconomic fundamentals are expected to provide solid support for a continued, though modest, market rally.
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