Stock Market Today: Nifty Fails to Hold 25000, Sensex Rises 324 Points as IT and PSU Banks Leads

India’s stock market extended its winning streak for a sixth straight session on Wednesday, with IT and PSU bank stocks providing strong support. However, the Nifty failed to hold 25000 as auto shares witnessed profit-taking. Market sentiment turned positive after an exchange of messages between US President Donald Trump and Indian Prime Minister Narendra Modi, which boosted risk appetite among traders.

Nifty Fails to Hold 25000 Despite Strong Gains

The NSE Nifty 50 rose 105 points to close at 24,973, while the S&P BSE Sensex advanced 324 points to settle at 81,425. The Nifty Bank index climbed 320 points to 54,536 and the Nifty Midcap index gained 535 points to reach 58,000. Market breadth favored advances in a 3:2 ratio.

IT Stocks Drive Market Gains

Information technology shares led the rally, following upbeat guidance from Oracle Corp. Oracle Financial Services Software Ltd surged 10%, while mid-cap IT stocks jumped 4-5%. Analysts said Oracle’s strong outlook provided a boost to the entire sector, making IT the top contributor to the day’s market performance.

PSU Banks Rally on Consolidation Buzz

Public sector banks advanced on reports of possible government consolidation plans. Bank of India and Union Bank of India rose nearly 4% each. Traders highlighted that fresh buying interest in defence and insurance stocks also supported market momentum. BEL and BDL emerged as top gainers in the defence space, while HDFC Life surged on expectations of GST relaxation.

Autos See Profit Booking After GST Hopes

Auto stocks came under pressure after their recent rally, driven by expectations of GST cuts. The top five Nifty losers were from the auto pack, including M&M, Maruti Suzuki, Bajaj Auto, Hero MotoCorp and Eicher Motors. Analysts noted that profit-booking in this sector capped Nifty’s ability to sustain above the 25,000 mark.

Expert View: Valuations Remain Stretched

GST cuts worth ₹48,000 crore — about 0.3% of GDP — may help consumption at the margin but are unlikely to drive earnings growth into double digits this year. While policy support and improved market sentiment have fueled the recent rally, valuations remain stretched.

Disclaimer:
The information provided in this blog is for educational and informational purposes only. It does not constitute investment advice, a recommendation, or an offer to buy or sell any financial instruments. Stock market investments are subject to market risks. Past performance is not indicative of future results. Readers are advised to consult a qualified financial advisor before making any investment decisions. The author and publisher are not liable for any losses or damages arising from the use of this information.

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