Closing Bell: Sensex surges 2,900 points; Nifty inches closer to 24,000 — Why are markets rising today?

Indian equity markets witnessed a sharp rebound on Wednesday, with benchmark indices ending significantly higher amid strong buying across sectors.

The Sensex rose 2,946 points to 77,562.90, and the Nifty settled near the 24,000 mark at 23,997.35. The rally was broad-based, with strong gains across sectors and heavy buying in frontline stocks.

Top Gainers and Losers

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Among Sensex constituents, IndiGo, Larsen & Toubro, Bajaj Finance, Axis Bank and Mahindra & Mahindra were among the top gainers, rising between 6 per cent and 8 per cent. Maruti Suzuki, UltraTech Cement, Titan, Bajaj Finserv and HDFC Bank also posted strong gains of over 5 per cent each.

Adani Ports, ICICI Bank, Kotak Mahindra Bank and Asian Paints added up to 5 per cent, while Reliance Industries, Tata Steel and State Bank of India rose up to 3 per cent. On the losing side, Power Grid, Sun Pharma and Tech Mahindra ended marginally lower.

Nifty Broader Indicies

Broader markets outperformed the benchmarks, with the Nifty Next 50 rising 4.74 per cent, while midcap and smallcap indices gained between 3.9 per cent and 4.6 per cent. The Nifty Midcap Select index rose 4.75 per cent, while the Nifty Smallcap 100 and Smallcap 50 indices also posted gains of over 4 per cent, indicating strong participation beyond large-cap stocks.

Nifty Sectoral Indicies

Sectorally, auto, realty and financial stocks led the rally. The Nifty Realty index surged 6.75 per cent, while the Nifty Auto index gained 6.69 per cent.

Banking and financial stocks were also strong, with the Nifty Bank index rising 5.67 per cent and the Nifty Financial Services index up 5.54 per cent.

The PSU Bank and Private Bank indices gained over 5 per cent each. Consumer durables and oil and gas sectors also saw buying interest.

On the other hand, defensive sectors underperformed. The Nifty FMCG index rose 1.54 per cent, while the IT and pharma indices posted modest gains of around 0.5 per cent each. Healthcare and select technology indices also saw limited upside.

Market expert Anil Singhvi said the rally was driven by multiple favourable factors coming together, rather than a single trigger.

“The strength on the screen is very strong. Buying is visible at every dip, and after each dip, the market is attempting to move above the previous levels,” he said.

Broad-based rally across segments

The rally remained broad-based, with gains not limited to large-cap stocks. Mid-cap and small-cap segments outperformed, indicating strong overall market sentiment.

Among key triggers, easing geopolitical tensions supported global sentiment. Developments related to a ceasefire-like situation involving the United States, Iran and Israel contributed to the positive momentum.

Domestically, a stable outcome from the Reserve Bank of India’s monetary policy meeting, which met market expectations, further aided sentiment.

Positive news flow surrounding the Adani Group also supported the upmove. Singhvi said multiple positive developments occurring simultaneously tend to have a stronger impact on markets.

“Sometimes several good news items come together, and that has a bigger effect. That is what is happening now,” he said.

FII positioning and market impact

Foreign institutional investor (FII) positioning also played a role. Singhvi noted that FIIs have already sold around Rs 35,000 crore in recent sessions, which may limit aggressive profit booking at current levels.

“FIIs have already sold around Rs 35,000 crore in the last few days. That reduces the chances of aggressive profit booking at current levels,” he said.

However, he added that a key trigger going ahead would be FIIs stopping their selling. He outlined three stages to watch: first, FIIs stop selling; second, short covering begins; and third, fresh buying emerges.

“If FIIs stop selling, it can trigger another leg of rally,” he said. Crude oil prices remain another important factor for the market. Singhvi said crude is currently hovering around USD 94–95 per barrel, and a fall below USD 90 would be a positive for equities.

Crude oil and technical levels to watch

“If crude falls below USD 90, it will be a big positive for markets,” he said, adding that some positives may already be priced in at current levels. On technical structure, Singhvi said there are indications of a possible bottom formation, subject to key levels holding on a closing basis.

He said a close above 23,465 on Nifty and 54,150 on Bank Nifty would confirm a bottom formation for many traders. For stronger momentum, higher levels of around 23,865 on Nifty and 55,550 on Bank Nifty are important.

“If these levels are sustained, the market has the potential to move towards 24,500–24,800 levels,” he said. On the downside, immediate support is seen around 22,500, while a broader support zone lies between 21,750 and 22,150, where the market has taken multiple supports in recent sessions.

Investor strategy and outlook

Singhvi advised traders to hold long positions with trailing stop losses, while long-term investors should avoid panic selling. “Investors should not rush to sell. Those who entered at lower levels have better holding capacity due to the cushion,” he said.

He added that risk remains higher for those entering at elevated levels, while investors with positions from lower levels are relatively better placed.