Sensex rallies 907 pts in 2 days, Nifty tops 25,300 ahead of Fed outcome; what to expect?

Domestic equity benchmarks extended their winning streak for the second straight session on Wednesday, with the Sensex and Nifty closing in the green. Optimism over ongoing trade talks with the US kept the mood buoyant, while hopes of a Fed rate cut later in the day added extra fuel to investor sentiment.

At the closing bell, the Sensex advanced 313.02 points, or 0.38 per cent, to 82,693.71, extending its two-day winning run by 907 points. The Nifty50 climbed 91.15 points, or 0.36 per cent, to close at 25,330.25.

Ajit Mishra, SVP – Research at Religare Broking Ltd, said that after a firm start, the 50-pack index moved within a narrow range through the session before finally settling at 25,330.25.

“Sectoral performance was mixed, with IT, banking, and auto emerging as the top gainers, while metals, FMCG, and pharma witnessed profit-taking. Meanwhile, the broader indices maintained their positive bias, with both midcap and small-cap indices closing in the green,” Mishra said.

Mishra said that persistent FII selling and caution ahead of the US Fed policy outcome capped the upside. “On the index front, Nifty is inching towards the 25,500 mark, supported by renewed strength in banking and rotational buying across sectors,” he added.

State Bank of India (SBI) emerged as the top gainer on the Sensex, climbing 2.91 per cent to Rs 856.00. Bharat Electronics (BEL) advanced 2.41 per cent, Kotak Mahindra Bank added 1.43 per cent, Maruti Suzuki rose 1.35 per cent, Trent gained 1.21 per cent, and UltraTech Cement was up 1.20 per cent.

Five stocks namely, SBI, Reliance Industries, Kotak Mahindra Bank, Infosys and BEL contributed heavily to the Sensex’s rise. 

Among the sectoral indices, the BSE IT index advanced 0.72 per cent to settle at 35,789.15, while the BSE Bankex index gained 0.75 per cent to close at 62,427.39.

Overall, out of the 4,328 active stocks traded on the BSE, 2,443 ended with gains, while 1,713 settled lower and 172 remained unchanged. As many as 162 stocks scaled their 52-week highs during the session. A total of 53 others hit their 52-week lows. The session also saw 296 stocks locked at their respective upper circuits and 150 others at lower circuits.

Within the BSE Sensex pack, Maruti Suzuki and Tata Steel touched fresh 52-week highs at Rs 15,809 and Rs 172.60, respectively.

Vinod Nair, Head of Research, Geojit Investments Limited, said the stock markets were aided by the revival of India–US trade talks and efforts to strengthen bilateral ties. 

“A stable INR added to investor confidence, while global markets traded cautiously ahead of the US Fed’s FOMC decision. Domestically, equities remained in risk-on mode, supported by expectations of a rate cut and improving macro fundamentals. Strong domestic inflows, currency stability, and favourable geopolitical dynamics continue to create a constructive near-term outlook for the market," Nair said.