The Indian stock market witnessed a rebound on Wednesday, recovering from Monday’s historic downturn. The Sensex surged by 900 points, breaking a three-day losing streak. At the close of trading, the Sensex stood at 79,468.01, up by 874.94 points or 1.11%, while the Nifty ended at 24,297.50, gaining 304.95 points or 1.27%.
44 of the Nifty 50 stocks advanced, led by substantial gains in ONGC, Coal India, Adani Enterprises, and Adani Ports, which surged up to 7.45%. All sectoral indices on the National Stock Exchange remained in positive territory, with Oil and Gas, Metal, and Pharma sectors leading the gains.
“Global markets experienced a notable rebound after the Bank of Japan’s Deputy Governor reassured that the central bank would not raise interest rates during a period of financial instability. The Indian market also witnessed broad-based buying across sectors, with the realty sector seeing a relief rally due to the reinstatement of indexation benefits. The carry trade issue appears to have been eased for now, and the focus is on the ongoing RBI policy, which is likely to hold the rate and maintain a positive economic outlook,” said Vinod Nair, Head of Research at Geojit Financial Services.
Indian Rupee fell to a record low of 83.9725 against the US Dollar, surpassing its previous low of 83.96 due to strong dollar bids and importer hedging. The Rupee is expected to trade with a negative bias amid a stronger US Dollar and geopolitical tensions in the Middle East, though positive global equities and potential RBI interventions might offer support. USD-INR spot prices are projected to range between Rs 83.75 and Rs 84.20.
“The recent amendment to the finance bill, allowing taxpayers to choose between a 12.5% LTCG rate without indexation or a 20% rate with indexation, provides relief to middle-class homeowners and is expected to boost the real estate sector,” said Varun Aggarwal, Managing Director of Profit Idea.
In commodities, gold and silver prices have rebounded slightly after recent declines, influenced by weaker US manufacturing data and concerns about a potential recession. Key sectors showed varied performance: Insurance (+16.11%), Shipbuilding (+15.82%), and Containers & Packaging (+12.22%) led gains, while Plastic Products (-4.05%) and Manufacturing (-2.98%) faced declines. The market outlook remains influenced by global economic conditions and sector-specific trends.
(ANI)