Indian benchmark indices opened higher on Wednesday, tracking positive global cues after U.S. inflation data boosted expectations of a Federal Reserve rate cut.
The BSE Sensex rose 179 points, or 0.22 per cent, to 80,414, while the Nifty 50 advanced 70 points, or 0.29 per cent, to 24,557.
Broader markets outperformed the benchmarks, with the BSE SmallCap gaining 0.65 per cent and the BSE MidCap rising 0.64 per cent.
Among sectoral indices, Nifty Metal surged 1.57 per cent and Nifty Realty added 0.76 per cent. Most other sectors traded mixed, with modest moves between 0.10 per cent and 0.40 per cent.
In the Nifty pack, Apollo Hospitals led the gainers, rising nearly 5 per cent, followed by Hindalco and Tata Motors. Maruti Suzuki was the top laggard, slipping 0.51 per cent, while Tech Mahindra and Axis Bank also posted marginal declines.
Analysts noted that strained U.S.-India trade relations and recent tariff announcements by U.S. President Donald Trump have weighed on market sentiment.
“Short positions have built up, pulling the market lower. Tepid earnings growth, elevated valuations, and modest FY26 earnings projections of 8–10 per cent have emboldened bears. A sudden shift in sentiment could trigger short covering and a sharp rebound,” said Dr. V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Amruta Shinde of Choice Broking added, “The daily chart shows a bearish candle with a long upper wick, indicating selling pressure at higher levels. Key support is placed at 24,400 and 24,300. A breakdown below these may extend the decline toward 24,000. Immediate resistance is at 24,600.”
Asian markets were broadly higher after U.S. data reinforced the likelihood of a Fed rate cut next month. Japan’s Nikkei surged 2.46 per cent to a fresh high. China’s Shanghai Composite rose 0.44 per cent, Shenzhen Composite gained 1.34 per cent, Hong Kong’s Hang Seng Index jumped 1.81 per cent, and South Korea’s Kospi added 0.63 per cent.
Overnight in the U.S., the Dow Jones gained 1.11 per cent, the S&P 500 climbed 1.13 per cent, and the Nasdaq Composite advanced 1.39 per cent.
On Tuesday, foreign institutional investors (FIIs) sold equities worth ₹3,399 crore, while domestic institutional investors (DIIs) were net buyers, purchasing shares worth ₹3,508 crore.
—IANS