Sensex gains 213 pts, takes 5-day rise to 1,600 pts; Nifty tops 25K; what's next?

Domestic equity benchmarks Sensex and Nifty50 extended their winning streak to a fifth straight session on Wednesday. After a muted start, the indices staged a smart recovery, supported by strong buying in IT and FMCG stocks amid a volatile session.

At close, the BSE Sensex was up 213.45 points, or 0.26 per cent, at 81,857.84, taking its five-day rally to over 1,600 points. The NSE Nifty50 advanced 69.90 points, or 0.28 per cent, to settle at 25,050.55. The 50-pack index witnessed a largely positive session, closing above the 25,000 mark. Sentiment is likely to favour the bulls as the index has sustained above the 21 EMA for the past three sessions, analysts said.

“Additionally, Put writers have outnumbered Call writers for the first time in several days. The Nifty is expected to remain a “buy on dips” as long as it holds above 24,800. On the higher side, resistance is placed at 25,250, above which the index may extend its gains towards 25,500,” said Rupak De, Senior Technical Analyst at LKP Securities.

Infosys emerged as the leading gainer on Sensex, with its shares rising by 3.88 per cent to Rs 1,495.85. TCS rose 2.69 per cent, followed by Hindustan Unilever (up 2.46 per cent), NTPC (up 2.10 per cent), Tata Steel (up 1.79 per cent), and Tech Mahindra (up 1.76 per cent).

Six stocks, namely Infosys, TCS, Hindustan Unilever, Eternal and NTPC, contributed heavily to the Sensex’s rise. 

In terms of sectoral performance, the BSE IT rose by 2.61 per cent to end at 35,030.98, while the BSE FMCG index climbed 1.36 per cent, closing at 20,847.09.

Overall, out of the 4,235 stocks traded on the BSE, 2,347 advanced, 1,718 declined, and 170 remained unchanged.

Vinod Nair, Head of Research, Geojit Investments Limited, said the Indian market sustained its positive momentum, supported by strong domestic inflows and favourable macro tailwinds. 

“However, rich valuations and external risks, particularly the U.S. tariffs and sanctions on purchase of Russian crude, continue to pose challenges. Hence, greater visibility on U.S. trade policy and the path of earnings recovery will be critical. Meanwhile, global sentiment is cautious ahead of the release of the FOMC minutes later today, with investor attention gradually shifting to the U.S. Fed Chair’s speech at Jackson Hole this weekend, which is expected to provide clearer guidance on future policy direction," Nair said.

Ajit Mishra, SVP, Research at Religare Broking Ltd, said the market extended gains for the fifth consecutive session on Wednesday. After a soft start, the Nifty gradually moved higher through the day, led by IT, FMCG, and realty stocks, while banking counters lagged. 

“The index eventually settled with modest gains of 0.28% at 25,050.55. Broader markets outperformed with positive market breadth, reflecting strength beyond frontline names. Today’s advance was largely supported by buying in large-cap IT stocks and steady domestic sentiment,” Mishra said.