Indian equity benchmarks registered a powerful rally on Wednesday as robust buying interest across IT, banking, metal, and FMCG stocks lifted investor sentiment following a positive start to the trading week. Expanding on earlier gains, the BSE Sensex surged by 889 points to finish the session at 77,654.60. Simultaneously, the broader NSE Nifty surged approximately 265 points to settle comfortably above key threshold levels at 24,250.20. The market's upward momentum was further supported by a turnaround in foreign institutional capital flows and expectations that the US Federal Reserve will keep policy interest rates unchanged at its upcoming meeting.
IT and Financial Shares Drive Market Rally
The information technology sector emerged as the primary catalyst behind the day's sharp gains. The IT index climbed nearly 2.8 percent, marking its third consecutive trading session of positive returns. Heavyweight IT performer Infosys witnessed a notable surge of almost 4 percent, alongside widespread accumulation in several other technology stocks. Beyond tech, buying momentum extended across banking, FMCG, metal, pharmaceutical, telecom, and private banking equities, which recorded advances ranging between 1 and 2 percent. Conversely, the realty sector stood out as the sole underperformer of the trading day, remaining under persistent selling pressure throughout the session.
Broad-Based Participation Signals Strong Investor Breadth
Wednesday's market surge reflected widespread participation across the broader equity market rather than concentration in select index heavyweights. Out of all traded equities, a total of 2,460 stocks closed higher in green territory, while 1,597 issues logged declines. This favorable advance-decline ratio underlines healthy market breadth, demonstrating that market participants actively deployed capital across diverse sectors, including mid-cap and small-cap categories.
FIIs Turn Net Buyers Alongside US Fed Rate Cues
Renewed buying by Foreign Institutional Investors (FIIs) provided a significant confidence booster for market participants. According to preliminary exchange data, foreign funds made net equity purchases worth approximately Rs 755 crore during Wednesday's session. This inflow snapped a four-day net selling streak by foreign institutional market players. Meanwhile, global investor attention remains tuned to the ongoing monetary policy deliberations of the US Federal Reserve. Market expectations lean heavily toward the US central bank maintaining current benchmark interest rates, despite lingering anticipations of a hawkish stance regarding inflation targets.
