Indian stock markets surged on Wednesday, with the Sensex climbing 500 points and Nifty comfortably breaching the 22,250 mark. A strong performance from IT heavyweights and PSU banks drove the gains, while financial stocks saw some pressure. Investors also kept a close eye on global market cues amid escalating trade tensions and fluctuating oil prices.
IT, PSU Bank Stocks Lead the Charge
The BSE Sensex rose sharply to trade at 73,490, up 500 points or 0.68%, while the Nifty50 gained 140 points to reach 22,250. The rally was led by strong buying in tech stocks, with HCL Tech, Tech Mahindra, and Wipro registering gains between 1.5% and 2.5%.
Public sector banks also saw significant interest. The Nifty PSU Bank index jumped 1.78%, with State Bank of India and Bank of Baroda leading the pack. Meanwhile, auto and metal stocks also contributed to the upward momentum, gaining 1.28% and 1%, respectively.
Some key market highlights:
- Coforge surged 10%, emerging as the top gainer on Nifty.
- Power Grid and Adani Ports gained over 2% each.
- Bajaj Finance and Bajaj Finserv were the biggest losers, falling 3.6% and 2.8%, respectively.
- The Nifty MidCap index advanced 1.35%, while the Nifty SmallCap index added 1.63%.
Financials Under Pressure Despite Market Gains
While broader indices traded strong, the financial sector remained an outlier. The Nifty Financial Services index dipped 0.24%, with major players like HDFC Bank, Bajaj Finance, and Shriram Finance weighing on the sector. Concerns over rising interest rates and global financial stability appeared to dampen investor sentiment.
Bajaj twins, Bajaj Finance and Bajaj Finserv, faced heavy selling pressure, dragging down the sector. Meanwhile, HDFC Bank continued its losing streak, shedding over 2% amid concerns about sluggish loan growth and deposit mobilization.
Global Markets React to Trade Tensions
Asian and European markets saw mixed reactions as investors evaluated the potential impact of renewed trade tensions sparked by fresh U.S. tariffs.
- Australian shares hit a 10-week low, with the S&P/ASX 200 index falling 1.1%.
- Hang Seng futures gained 0.5%, showing resilience despite global concerns.
- Japan’s Nikkei 225 futures dipped 0.2%, with the Topix index remaining mostly flat.
- Euro Stoxx 50 futures climbed 1.4%, signaling optimism in European markets.
Meanwhile, Wall Street struggled as economically sensitive sectors such as airlines and banking stocks fell due to the new tariff measures announced by President Donald Trump. The benchmark S&P 500 suffered its worst day of the year earlier this week, adding to the cautious sentiment across global markets.
Oil Prices Extend Losses as Demand Concerns Grow
Crude oil prices continued their downward trend as global trade tensions and rising supply concerns weighed on investor confidence. Brent crude futures dropped 15 cents to trade at $70.89 per barrel, marking their third straight session of losses.
Oil markets reacted sharply to the news that major producers plan to increase output in April, coupled with fears that U.S. tariffs on Canada, Mexico, and China could weaken demand.
Outlook for Indian Markets
The current rally in the Indian stock market indicates strong underlying momentum, particularly in IT and banking stocks. However, global macroeconomic headwinds, especially trade-related uncertainties and oil price volatility, could inject short-term fluctuations.
Investors will closely watch policy decisions, inflation trends, and corporate earnings in the coming weeks. Despite sectoral divergence, the overall market sentiment remains bullish as India continues to be one of the fastest-growing major economies in the world.
