Markets opened strong on Wednesday, with the benchmark indices Sensex and Nifty registering significant gains in early trade, driven by improved global sentiment after US President Donald Trump’s reassuring comments on Fed Chair Jerome Powell and China trade relations.
The BSE Sensex surged 594.06 points or 0.75 per cent to 80,189.65 at 9:46 AM, after opening at 80,142.09, while the NSE Nifty gained 177.40 points or 0.73 per cent to 24,344.65, from an opening of 24,357.60.
IT stocks emerged as the top performers in early trade, with HCL Technologies leading the gainers pack, soaring 7.15 per cent after reporting better-than-expected Q4 results and providing strong FY26 guidance. Tech Mahindra followed with a 4.47 per cent gain, while Infosys rose 3.59 per cent and Wipro advanced 2.61 per cent. Mahindra & Mahindra rounded out the top five gainers, with a 2.52 per cent increase.
Among the top losers, Eicher Motors declined 0.80 per cent, followed by Trent (-0.49 per cent), SBI Life (-0.48 per cent), Kotak Mahindra Bank (-0.44 per cent), and Grasim Industries (-0.38 per cent).
“US stocks and the dollar rebounded as Trump steps back,” said Devarsh Vakil, Head of Prime Research at HDFC Securities. “With gains led by the financials and consumer discretionary sectors, US equity markets have advanced, signalling a shift towards risk-on sentiment among investors.”
The market rally comes after Trump stated he had no intention of firing Federal Reserve Chair Jerome Powell and indicated a preference for a trade agreement with China that would avoid heavy tariffs.
“Domestic equity benchmarks are poised for a strong opening, with the Gift Nifty indicating a nearly 1 per cent rise — over 200 points — driven by a global market rally,” noted Vikas Jain, Head of Research at Reliance Securities.
Foreign Institutional Investors (FIIs) have been consistently bullish on Indian markets, investing nearly ₹18,000 crore over the past five trading sessions — the longest streak of buying in recent months.
Technical analysts maintain a positive outlook on the index. “Nifty’s technical outlook remains robust above its 200-DMA at 24,051. The next target for Nifty is pegged at 24,858, with immediate supports at the psychological levels of 24,000 and its 100-DMA at 23,397,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
However, some experts advise caution at current levels. “NIFTY-50 has closed in a doji candle near the higher end of the range, and we expect some profit-booking with stiff resistance near 24,500 levels and minor retracement over the next few days,” cautioned Vikas Jain of Reliance Securities.
The banking sector, particularly Bank Nifty, also witnessed positive momentum, reaching a new all-time high of 55,961, before closing higher by 350 points. “Bank Nifty scaled a new all-time high at 55961… There are multiple gaps left in the daily charts and we expect some consolidation at current levels,” Jain added.
Sector-wise, banks and NBFCs are expected to continue their rally due to strong quarterly results and optimism surrounding the RBI’s revised Liquidity Coverage Ratio norms. FMCG stocks are anticipated to perform well on expectation of improved rural demand following favourable monsoon forecasts.
“Fertilizers and tractors are likely to see positive momentum, driven by expectations of improved demand following the IMD’s forecast of an above-normal monsoon at 105 per cent of the Long Period Average,” according to Jain.
In the commodity markets, gold prices faced volatility, surging to an intraday high of $3,500 per ounce, before correcting sharply. “Gold and silver prices experienced heightened volatility in yesterday’s session. Gold surged near the $3,500 per troy ounce mark during early trade, reflecting strong bullish momentum. However, the rally was short-lived,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Oil prices also showed volatility but rebounded on declining US inventories. “Crude oil prices showed very high volatility and rebounded again amid decline in the US oil stocks and recovery in the US equity markets,” Kalantri noted.
As the monthly expiry approaches, market experts advise traders to adopt a cautious stance. “As the monthly expiry approaches, traders are advised to adopt a neutral stance for the coming month, and a ‘buy on dips’ strategy is preferred over ‘sell on rise’ at this stage,” suggested VLA Ambala, Co-Founder of Stock Market Today.
Published on April 23, 2025
