Indian equity benchmark indices Sensex and Nifty closed with significant gains on Wednesday, extending the previous session's rally as investor sentiment was buoyed by optimism surrounding the landmark India-European Union free trade agreement. The positive momentum was driven by strong buying in key sectors, including defence, financial services, and infrastructure stocks.
Market Performance Highlights
The BSE Sensex advanced by 487.20 points, or 0.60 per cent, to settle at 82,344.68. Meanwhile, the NSE Nifty rose by 167.35 points, or 0.66 per cent, to end at 25,342.75. This upward movement reflects growing confidence among investors following the successful conclusion of the free trade pact between India and the EU, which is expected to boost economic ties and trade flows.
Top Gainers and Losers in Nifty50
The rally was led by several prominent stocks, with notable gainers including:
- BEL (up 8.91%)
- ONGC (up 8.33%)
- Coal India Ltd (up 5.01%)
- Eternal (up 4.91%)
- Hindalco (up 3.78%)
- Bajaj Finance (up 2.24%)
- Power Grid (up 2.15%)
- Trent (up 1.82%)
- Adani Enterprises (up 1.80%)
- Shriram Finance (up 1.78%)
On the other hand, some stocks faced selling pressure, with top losers being:
- Asian Paints (down 4.24%)
- Maruti Suzuki (down 2.42%)
- Max Healthcare (down 1.74%)
- Sun Pharma (down 1.73%)
- Dr Reddy’s Laboratories (down 1.40%)
Sensex Performance Breakdown
Within the Sensex, key gainers included Eternal (up 4.91%), Bajaj Finance (up 2.24%), Power Grid (up 2.15%), Mahindra & Mahindra (up 1.65%), and UltraTech Cement (up 1.42%). Conversely, Asian Paints (down 4.24%), Maruti Suzuki (down 2.42%), and Sun Pharma (down 1.73%) were among the notable decliners.
Institutional Activity and Market Sentiment
According to exchange data, foreign institutional investors (FIIs) offloaded equities worth Rs 3,068.49 crore on Tuesday. However, domestic institutional investors (DIIs) provided robust support by purchasing stocks worth Rs 8,999.71 crore, highlighting strong domestic buying interest that helped sustain the market rally.
Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, commented, "Indian equity markets closed the session on a positive note, supported by improving global cues and renewed optimism on the external trade front following the successful conclusion of the Free Trade Agreement between India and the European Union." This sentiment underscores the impact of the trade deal on market dynamics.
Global Market Context
In Asian markets, indices such as South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng ended higher, contributing to a positive regional backdrop. Meanwhile, equity markets in Europe were trading lower, and US markets ended mostly higher on Tuesday. On the commodities front, Brent crude, the global oil benchmark, slipped 0.62 per cent to $67.25 per barrel, indicating mixed trends in global assets.
The overall market performance reflects a combination of domestic optimism driven by the India-EU trade agreement and supportive global cues, setting a positive tone for Indian equities in the near term.
