Indian equity benchmarks concluded Wednesday's trading session on a positive note, despite late-session profit booking curtailing some of their earlier intraday advances. The 30-share BSE Sensex surged 772.75 points, or 0.95 per cent, to close at 81,879.40. Similarly, the NSE Nifty index climbed 210.40 points, or 0.84 per cent, settling at 25,255.05.
During the trading day, the Sensex touched an intraday high of 82,520.40, while the Nifty peaked at 25,424.35, reflecting strong early momentum. However, as the session progressed, investors engaged in profit booking, particularly in heavyweight stocks, which pared some of these significant gains.
Sectoral Performance and Broader Market Trends
On the sectoral front, automobile, banking, and fast-moving consumer goods (FMCG) stocks were the primary drivers of the market's upward movement. In contrast, pharmaceutical and healthcare shares experienced a relatively subdued performance throughout the day.
The rally was not confined to the frontline indices alone, as broader markets actively participated in the positive sentiment. The Nifty Midcap100 index recorded a gain of 0.81 per cent, while the Nifty Smallcap100 index performed even better, advancing by 1.59 per cent.
Key Triggers and Expert Insights
Ajit Mishra, SVP – Research at Religare Broking, noted that the Nifty had crossed the 25,400 mark early in the day, supported by a combination of favorable global and domestic cues. He highlighted that aggressive buying by foreign portfolio investors (FPIs) was a significant trigger, with cumulative November inflows reaching approximately $5.68 billion, marking the strongest monthly inflow since September 2024.
Mishra also pointed to Brent crude prices remaining around $93 per barrel, well below recent peaks, which helped ease concerns regarding imported inflation. Optimism surrounding domestic demand and corporate earnings, coupled with a moderating global enthusiasm for AI-linked investments, further enhanced the relative attractiveness of Indian equities.
Vinod Nair, Head of Research at Geojit Investments, attributed the market's positive trajectory to the Indian rupee's recent appreciation. This was, in turn, bolstered by sustained foreign inflows and the prevailing softer crude oil prices.
Nifty Outlook and Investment Strategy
Vatsal Bhuva, Technical Analyst at LKP Securities, observed that despite Wednesday's gains, the Nifty formed a bearish candlestick on daily charts due to profit booking. He cautioned that the index is currently trading in an 'overbought' zone, suggesting a potential mild retracement towards the 25,000–24,800 levels in the near term.
Bhuva identified 25,500 as an immediate resistance level for the Nifty. However, he maintained that the broader market trend remains positive, advising investors to adopt a 'buy-on-dips' approach. According to Bhuva, any intermediate correction towards the mentioned support levels should be viewed as a buying opportunity rather than a signal of a trend reversal, as the Nifty is expected to resume its upward trajectory after a brief pullback.