Midday Market Report: Sensex above 73,330; Nifty maintain gains as IT stocks rally

The benchmark indices, Sensex and Nifty, continued their upward momentum in the midday session on Wednesday, buoyed by buying interest in IT stocks and strong global cues. At 12:50 PM, the BSE Sensex was trading at 76,366.64, up by 465.23 points or 0.61 per cent, while the NSE Nifty surged 159.45 points to 23,116.70, marking a 0.69 per cent rise.

IT Stocks Lead the Charge
Gains were led by heavyweight IT stocks such as Infosys, Tata Consultancy Services (TCS), HCL Tech, and Tech Mahindra, which saw strong buying interest. Other notable gainers included Tata Steel, Tata Motors, Zomato, and Kotak Mahindra Bank. On the flip side, Hindustan Unilever, Nestle India, ITC, and Asian Paints were among the laggards.

Global Cues Provide Support
Asian markets exhibited strength, with Seoul and Tokyo trading in positive territory. However, markets in Shanghai and Hong Kong remained closed due to holidays. In the U.S., Wall Street ended higher on Tuesday, adding to the optimism in the Indian market.

Foreign Investor Activity and Market Sentiment
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,920.69 crore on Tuesday, according to exchange data. Despite this selling pressure, domestic investors remained optimistic, focusing on upcoming policy cues from the Union Budget 2025 and the U.S. Federal Reserve’s rate decision.

Expert Take on Market Resilience
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, "The recovery witnessed on Tuesday is likely to continue, especially in fairly priced financials. However, a sharp rally remains unlikely as FIIs may offload at higher levels."

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, added, "The market’s focus is now on the Federal Reserve’s policy stance and the upcoming Union Budget, where measures to boost consumption and growth will be key drivers."

Sectoral Performance and Oil Prices
While IT stocks led the rally, FMCG and paint stocks faced selling pressure. Meanwhile, Brent crude prices remained subdued, dipping 0.15 per cent to USD 77.37 per barrel, potentially easing inflationary concerns.

Outlook for the Day
With global cues remaining favorable and domestic sentiment staying resilient, the markets are expected to sustain their positive momentum. Investors will keep an eye on budgetary developments and global interest rate trends for further direction.