Sensex, Nifty End Nearly 1% Higher as Banking Stocks Drive Late Recovery

KEY TAKEAWAYS:

Sensex jumped 650 points, Nifty gained over 210 points.
Banking and financial stocks led the second-half recovery.
Capital market stocks slid sharply after RBI revised exposure norms.

Mumbai: Indian equity benchmarks staged a strong rebound on Wednesday, with the Sensex Nifty market today ending firmly in positive territory, led by heavy buying in banking and financial stocks. The 30-share Sensex settled 650.39 points, or 0.79 per cent, higher at 83,277.15, while the broader Nifty climbed 211.65 points, or 0.83 per cent, to close at 25,682.75.

Analysts said the sharp recovery in the second half of the session reflected resilient domestic buying, even as global uncertainties and regulatory concerns weighed on select sectors.

Nifty Technical Outlook Remains Positive

Market experts said the broader technical structure of the Nifty remains constructive as long as key support levels are protected.

“The broader structure remains positive as long as the 25,500–25,400 support zone is defended,” an analyst said. “On the upside, immediate resistance is seen in the 25,700–25,800 band. A decisive breakout above this range could accelerate momentum toward the 25,900–26,000 zone.”

Banking, Financial Stocks Lead Gains

Buying interest intensified in banking and financial counters during the latter part of the session, helping the indices recover from early weakness. Among Sensex constituents, Power Grid, HDFC Bank, Axis Bank, NTPC, ITC and Asian Paints emerged as top gainers, rising as much as 4.5 per cent.

Sectorally, realty, PSU banks, private banks and pharma stocks witnessed strong demand, reflecting investor preference for domestic-facing and defensive themes.

Capital Market Stocks Under Pressure

Shares of capital market-related companies came under sharp pressure after the Reserve Bank of India revised norms related to capital market exposure. Stocks such as BSE, Angel One and MCX fell up to 10 per cent during the session, weighing on sentiment in the broader financial services space.

Meanwhile, Tech Mahindra, Maruti Suzuki, Bajaj Finance, M&M and Trent ended the day lower, slipping up to 1.3 per cent, as auto and metal stocks continued to face selling pressure.

Broader Markets and Rupee Movement

In the broader market, the Nifty MidCap index gained 0.48 per cent, while the Nifty SmallCap index edged up 0.11 per cent, indicating selective buying beyond frontline stocks.

The rupee traded largely flat near 90.62 against the US dollar, as cautious sentiment prevailed in currency markets. However, the recovery in equities after a weak opening helped stabilise the domestic currency.

Market Outlook Prediction

Analysts said that despite global headwinds and regulatory adjustments, strong domestic participation especially in banking stocks helped Indian markets end the session on a firm note. Investors are expected to closely track global cues, interest rate signals and sector-specific developments for further direction in the coming sessions.

Also Read | Sensex, Nifty Rally Sharply as Banking Stocks Lead Market Recovery

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