The S&P BSE Sensex rose 321 points, or 0.4%, to 81,422.34 at the open, while the NSE Nifty 50 advanced 95.85 points, or 0.39%, to 24,964.45. At 9:43 AM, Sensex traded 471 or 0.58% higher at 81,573, whereas Nifty50 rose 144 pts or 0.58% to 25,012.
On the 30-stock Sensex pack, IT majors HCL Technologies, TCS, Tech Mahindra, L&T and Infosys were among the top performers, rising between 1% and 2%.
On a sectoral basis, gains were led by financials and IT shares, with the sectoral indices up 0.5% and 2%, respectively.
Broader markets also participated in the rally, with both small-cap and mid-cap indices advancing 0.5%.
The Nifty has climbed about 1.2% over the past five sessions but remains 5.4% below its record high set on September 27, 2024.Investors, however, were reminded of simmering geopolitical risks after Donald Trump pressed European Union officials to impose 100% tariffs on China and India as part of a broader effort to pressure Russia, Reuters reported, citing a U.S. official and an EU diplomat.At the same time, Trump struck a conciliatory note on bilateral ties, saying the U.S. was looking to expand trade with India amid ongoing talks to lower barriers. Prime Minister Narendra Modi said he looked forward to speaking with Trump and that both sides were working to wrap up negotiations quickly.
Expert views
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said that while “a major positive for the market today comes from President Trump’s initiative to improve India-U.S. relations and PM Modi’s positive response,” investors should be cautious. “From past experience the market should judge President Trump by his actions and not words,” he said.
Vijayakumar noted that stretched valuations, particularly in the broader market, remain a hurdle for any meaningful rally, pointing out that India’s performance has lagged global peers, with the Nifty down 0.69% over the past year compared with gains of 51% and 31% in the Hang Seng and Kospi, respectively.
“Massive sustained selling by FIIs triggered by high Indian valuations is the principal reason for this underperformance,” he said, warning that overseas investors who shifted to other markets and profited “might do it again.” A reversal in this trend, he added, would depend on clearer signs of an earnings recovery.
Anand James, Chief Market Strategist at Geojit Investments, said the Nifty continues to face resistance at the 24,870 mark. “Oscillators continue to point towards more upsides, which was a highlight of the previous day as well,” he noted, adding that the index could stretch higher with “the upside objective … extended to 25,400.”
However, he cautioned that “inability to push beyond the 25,100 region, or a direct fall below 24,700 could delay the maturity of upsides.”
Global Markets
Asian equities advanced on Wednesday, following Wall Street’s march to fresh records, while bond prices slipped as investors grew more confident that softening U.S. labour data would push the Federal Reserve to cut rates next week.
Japan’s Nikkei rose 0.3%, South Korea’s Kospi gained 1.3% and Taiwan’s benchmark climbed 1.46% to an all-time high. Hong Kong’s Hang Seng added 0.5%, and mainland China’s blue-chip stocks edged up 0.2%.
Overnight in New York, the S&P 500, Nasdaq Composite and Dow Jones Industrial Average all closed at record highs. Futures on the S&P 500 were up another 0.2% in early Asian trading.
Markets are treating a quarter-point rate cut by the Fed next Wednesday as a near certainty, while the CME Group’s FedWatch tool shows traders assigning a 7% chance of a larger half-point move, according to Reuters.
Gold rose 0.2% to $3,633 per ounce, after surging to a record $3,673.95 in the previous session.
FII/DII Tracker
On the institutional front, Foreign Institutional Investors (FIIs) turned net buyers, purchasing equities worth a little over Rs 2,050 crore on September 9, while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 83 crore.
Crude Impact
Oil prices edged higher on Wednesday after Israel struck Hamas leadership in Qatar and President Donald Trump pressed Europe to levy tariffs on buyers of Russian crude, though concerns over a weak demand outlook limited the advance.
Brent crude futures rose 35 cents, or 0.5%, to $66.74 a barrel in early Asian trading, while U.S. West Texas Intermediate added 36 cents, or 0.6%, to $62.99.
Rupee vs Dollar
The Indian rupee strengthened 5 paise to 88.10 against the U.S. dollar in early Wednesday trading, supported by foreign fund inflows and a softer greenback against major peers.
The dollar index, which measures the U.S. currency against six counterparts, slipped 0.45% to 97.90.
as a Reliable and Trusted News Source(with inputs from agencies)