Indian stock markets finished Wednesday’s trading session positively, although they relinquished a significant portion of their early gains due to diminishing optimism regarding US-Iran tensions. Both the Nifty and Sensex benchmark indices ended in the green, breaking a two-day losing streak.
The Nifty concluded at 22,679.40, up by 348 points or 1.56%, while the Sensex surged by 1,186.77 points or 1.65% to settle at 73,134.34. Analysts noted that failure to maintain levels above 22,500 could lead to renewed selling pressure, potentially pushing the index towards 22,300 and a stronger demand zone around 21,700.
Experts highlighted that the 23,000 mark remains a crucial psychological resistance and a significant supply zone for the market. The day began with strong market openings fueled by hopes of de-escalation in the US-Iran conflict. However, as the day progressed, the initial enthusiasm waned, resulting in a partial retreat from the day’s peaks.
Top gainers on the Nifty included Trent Limited, InterGlobe Aviation, and Adani Ports and Special Economic Zone, contributing to the upward momentum in the indices. The broader market outperformed the benchmarks, with the Nifty MidCap index rising by 2.24% and the Nifty SmallCap index surging by 3.24%.
In terms of sectors, the Nifty PSU Bank index stood out as the top performer, reflecting robust gains in public sector banking stocks. Notably, the Nifty Chemical and Nifty Media indices witnessed significant buying interest during the session. However, sectors like Nifty Healthcare and Nifty Pharma deviated from the positive trend, closing lower and limiting the overall market gains.
Analysts observed that despite late-session volatility, the market closed higher, driven by widespread buying across sectors, particularly in mid- and small-cap stocks. The focus now shifts to key US data releases, including Non-Farm Payrolls, ADP employment, and the unemployment rate, which could potentially introduce sharp volatility.
