Sensex Rises 500 Points, Nifty Crosses 23,300 on Global Cues, Value Buying

India’s equity market witnessed a strong recovery on Wednesday, with benchmark indices Sensex and Nifty rebounding from the previous session’s sharp losses. A combination of positive global cues, value buying in blue-chip stocks, and easing market volatility contributed to the surge in investor sentiment.

The BSE Sensex soared 524 points or 0.68% to 76,548.51, while the broader NSE Nifty climbed 146.2 points or 0.63% to 23,311.90 in early trade. Leading the rally were Tech Mahindra, Infosys, HDFC Bank, Maruti Suzuki, ICICI Bank, Bharti Airtel, Zomato, and Adani Ports.

Positive Global Cues Fuel Market Momentum

Asian markets provided mixed signals, with Shanghai trading in the green while Hong Kong remained in the red. Meanwhile, on Wall Street, major indices displayed resilience. The S&P 500 gained 21.22 points or 0.38% to close at 5,633.07, while the Nasdaq Composite surged 150.60 points or 0.87% to 17,449.89. However, the Dow Jones Industrial Average dipped slightly by 11.80 points or 0.03%, closing at 41,989.96.

Investors are closely monitoring upcoming U.S. tariff announcements, which could have broader implications for global trade. Analysts suggest that markets are pricing in the potential impact of these tariffs, leading to heightened volatility in the short term.

“The element of uncertainty regarding reciprocal tariffs is expected to ease with the tariff declaration today. However, considering past unpredictability in trade policies, volatility may persist,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Highlights:

• Asian markets mixed: Shanghai gained while Hong Kong remained in negative territory.

• Wall Street ended positively: Nasdaq and S&P 500 gained, while the Dow Jones declined marginally.

• US tariff impact: Markets awaiting clarity on trade policies, which could influence investor sentiment.

Value Buying Supports Recovery in Blue-Chip Stocks

The recent correction in the Indian stock market created opportunities for value buying, particularly in heavyweight stocks. Blue-chip names such as HDFC Bank, Maruti Suzuki, ICICI Bank, and leading IT companies witnessed renewed investor interest.

Market experts attribute this buying spree to attractive valuations, following the sharp declines in recent sessions. The renewed confidence comes ahead of key domestic triggers, including the earnings season and the Reserve Bank of India’s (RBI) monetary policy decision.

“We are entering the earnings season, and the RBI’s monetary policy decision is also around the corner. While tariffs remain a key factor, multiple other triggers are playing out simultaneously,” said Anita Gandhi, Founder and Head of Institutional Business at Arihant Capital Markets.

Highlights:

• Large-cap stocks attract buying interest: Investors see value after recent corrections.

• Earnings season and RBI policy in focus: Key domestic triggers likely to shape market direction.

• Tech and banking sectors lead the recovery: IT and banking stocks among the top gainers.

Easing Market Volatility Enhances Stability

The India VIX, a measure of market volatility, declined 0.89% to 13.66, reflecting reduced fears of sudden market swings. A lower VIX generally signals greater market stability, providing investors with confidence to take fresh positions.

With market sentiment improving, analysts believe Nifty could witness a technical bounce-back if key support levels hold firm.

“The five-day decline from the interim top has now reached the 38% Fibonacci retracement level of the rally from March 4 to March 25. This could be an ideal setup for bulls to stage a recovery towards 24,200,” said Anand James, Chief Market Strategist at Geojit Financial Services.

He further pointed out that immediate support for Nifty stands at 23,137, while strong downside support is seen between 22,730 and 22,650.

Highlights:

• India VIX down: Reduced market volatility signals increased stability.

• Technical recovery likely: Nifty could rebound towards 24,200 if support levels hold.

• Critical support at 22,650-22,730: Market experts highlight key levels to watch.

Outlook on Sectoral Performance and Market Trends

Sectors such as IT, banking, and auto were among the key drivers of the current rally. IT stocks, including Tech Mahindra and Infosys, gained traction amid strong earnings expectations, while banking stocks rebounded from their recent losses.

The auto sector also saw renewed investor interest, with Maruti Suzuki and Tata Motors trading higher. The demand outlook for the sector remains positive, supported by strong vehicle sales and improving consumer sentiment.

Energy stocks remained mixed, with Reliance Industries and ONGC facing some selling pressure due to global crude oil price fluctuations. However, the overall market breadth remained positive, with more stocks advancing than declining.

Highlights:

• IT and banking stocks lead the gains: Positive sentiment in the sector boosts market confidence.

• Auto stocks rally: Strong demand and consumer sentiment drive interest.

• Energy sector mixed: Crude oil price fluctuations impact stock movements.

Foreign Institutional Investors and Market Liquidity

Foreign Institutional Investors (FIIs) played a crucial role in the day’s market movement, with data indicating a net inflow into Indian equities. Improved global risk appetite and attractive valuations in the Indian market encouraged FIIs to re-enter after recent outflows.

Domestic Institutional Investors (DIIs) also supported the rally, with mutual funds and insurance companies increasing their stake in large-cap and mid-cap stocks.

Market experts suggest that liquidity flows from both FIIs and DIIs could sustain the upward momentum in the near term.

Highlights:

• FIIs return to Indian markets: Global risk appetite improves.

• DIIs boost domestic buying: Mutual funds and insurance firms increase stakes.

• Liquidity support strengthens rally: Continued inflows could sustain market momentum.

Technical Indicators and Resistance Levels

From a technical perspective, Nifty faces resistance at 23,500, while support is placed at 23,050. Analysts believe that if Nifty sustains above 23,300, further upside towards 23,800-24,200 is possible.

The Bank Nifty index also showed resilience, climbing 0.85% to 51,630, led by gains in HDFC Bank, ICICI Bank, and Kotak Mahindra Bank.

“If Nifty sustains above 23,300, bulls will look to push towards 23,800 in the coming sessions. However, a break below 23,050 could invite renewed selling pressure,” said Rajesh Palviya, Head of Technical Research at Axis Securities.

Highlights:

• Nifty resistance at 23,500: Breakout could lead to a move towards 23,800-24,200.

• Bank Nifty gains 0.85%: HDFC Bank, ICICI Bank lead financial sector recovery.

• Key support at 23,050: A break below this level could trigger further downside.