Indian benchmark indices began the session on Wednesday with a slight positive uptick, marking a break from the Nifty’s first-ever 10-day losing streak. Analysts were optimistic about a potential rebound, especially after the Nifty bounced back from its strong support level of 22,000.
At 10 am, The Sensex gained 547.23 points, or 0.75 per cent, at 73,537.16, while the Nifty rose 179.30 points, or 0.81 per cent, to reach 22,261.95. A total of 2,745 stocks advanced, 480 declined, and 107 remained unchanged.
Broader Market
The broader markets also faced declines, with the BSE Smallcap index slipping 0.8 per cent and the BSE Midcap index dropping 1.2 per cent. Both the small- and mid-cap indices officially entered bear market territory in February, having fallen over 20 per cent from their record highs.
However, the broader markets made a strong recovery, building on the gains from the previous session. The BSE Smallcap and BSE Midcap indices each rose nearly 2 per cent, outperforming their large-cap counterparts.
Sectorial Update
On the sectoral front, all 13 major sectoral indices closed in the green, with Nifty IT leading the charge, up over 2 per cent after recovering from a sharp decline in the previous session. Other notable gainers included Nifty Auto, Nifty PSU Bank, and Nifty Metal, each surging by 1.5-2 per cent.
Expert Comment
“Uncertainty unleashed by Trump tariffs is reigning supreme now and this is weighing on markets. Consequently, trading volumes have dipped sharply,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. However, Vijayakumar added that the market’s decline amid low volumes does not necessarily signal a sustained downtrend, noting that in this chaotic environment, a lack of new developments could prompt market movements.
For now, Vijayakumar advises investors to adopt a “wait and watch” approach as events unfold. On a more optimistic note, Devarsh Vakil, Head of Retail Research at HDFC Securities, anticipates the market may hit bottom in the near term.
