Sensex up 304 pts, Nifty above 24,600; will stock market gains sustain?

Domestic equity benchmarks Sensex and Nifty50 settled higher on Wednesday, buoyed by upbeat investor sentiment after softer US inflation data strengthened expectations of a Federal Reserve rate cut in September. On the domestic front, investor confidence was also significantly boosted as India's retail inflation had fallen to an eight-year low.

At close, the BSE Sensex was up 304.32 points, or 0.38 per cent, at 80,539.91. The NSE Nifty50 rose 131.95 points, or 0.54 per cent, to settle at 24,619.35. The Nifty remained strong throughout the day after initial hours of uncertainty, closing at a multi-day high and signaling improved sentiment amid tariff-related concerns, said Rupak De, Senior Technical Analyst at LKP Securities.

“The daily RSI has recently entered a positive crossover and continues to hold this momentum after several days of indecision. With sentiment showing signs of improvement, the likelihood of the Nifty moving above the 24,700 resistance has increased. A decisive move above this level could trigger a rally towards 25,200 in the short term. On the lower side, support is placed at 24,337, below which the dynamics would once again turn in favor of the bears," De said.

Bharat Electronics led Sensex gainers, rising 2.30 per cent to Rs 389 apiece.  Eternal rose 2.19 per cent, followed by Mahindra & Mahindra (up 1.65 per cent), Kotak Mahindra Bank (up 1.56 per cent), Power Grid (up 1.53 per cent), and Tata Motors (up 1.44 per cent).

Seven stocks, namely HDFC Bank, Mahindra & Mahindra, Eternal, Bharti Airtel, Kotak Mahindra Bank, Bharat Electronics and Reliance Industries, contributed heavily to the Sensex’s rise.

Among sectoral indices, the BSE Auto rose 1.18 per cent, or 627.92 points, to end at 53,948.43. BSE Realty climbed 0.26 per cent to settle at 6,883.33.

Vinod Nair, Head of Research at Geojit Investments Limited, said the Indian equities experienced a broad-based optimism as CPI hit an eight-year low, boosting hopes for a revival in discretionary spending, led by autos and metals. Midcaps outperformed, reflecting strong investor appetite.

“Globally, sentiment improved on the extension of China’s tariff deadline and easing oil prices. Despite uncertainties around Trump’s trade stance and global risks, India’s growth-inflation dynamics remain favourable for FY26 with a risk of marginal downgrade based on tariff updates. India looks forward to the Trump-Putin meet dated 15th August," Nair said.

Out of 4,241 stocks that traded on the BSE today, 2,185 advanced, 1,908 declined, while 148 stayed unchanged.