Indian Equities Close Higher As Foreign Buying Boosts Market Sentiment

Indian equity markets closed higher on Wednesday, as renewed foreign buying and positive global sentiment supported investor confidence, leading to gains for the Nifty 50 and BSE Sensex indices despite some mid-session profit booking.

Market Performance Overview

Indian equity markets closed higher on Wednesday, extending their recovery as renewed foreign institutional buying and improving global sentiment supported investor confidence. However, profit booking during the trading session trimmed some of the early gains in both benchmark indices. The NIFTY 50 index closed at 25,255.05, gaining 210.40 points or 0.84 per cent, while the BSE Sensex settled at 81,879.40, up 772.75 points or 0.95 per cent. The markets witnessed a volatile trading session after opening on a strong note. The Nifty had opened 1.17 per cent higher, while the Sensex rallied 1,143 points at the start of the session. However, selling at higher levels reduced the gains by the market close.

Expert Analysis on Market Trends

Vinod Nair, Head of Research, Geojit Investments, said, "Indian equities opened higher on positive global cues, tracking gains in US tech stocks, even as hawkish remarks from Fed officials pushed global yields higher while the latest US CPI print reinforced expectations of a December rate hike. However, small caps helped the broader market to outperform, while rotation out of defensive pharma stocks into autos and banks suggested risk appetite was returning. Whether this renewed risk appetite holds will depend on India's upcoming October inflation and US PPI data, which together should shape the outlook for domestic prices and global interest rates."

In the broader markets, the Nifty Midcap 100 gained 0.41 per cent, while the Nifty Smallcap 100 advanced 1.47 per cent, indicating stronger performance among small-cap stocks. Among sectoral indices on the NSE, the Nifty PSU Bank index emerged as a major gainer, rising 2.66 per cent. The Nifty Chemicals index jumped 1.85 per cent, while the Nifty Auto index gained 1.36 per cent. The Nifty Media index advanced 0.69 per cent, Nifty Oil & Gas rose 0.67 per cent, and Nifty FMCG gained 0.62 per cent by the close of trading.

Investor Outlook and Sector Insights

Vikram Kasat, Chief Business Officer - Advisory and Dealing at PL Capital, said Indian equity markets maintained a strong positive trend, supported by renewed foreign institutional buying, improving global sentiment and optimism around easing US-Iran tensions. "Indian equity markets maintained a strong positive bias, extending their recovery on the back of renewed foreign institutional buying, improving global sentiment and optimism around easing US-Iran tensions," Kasat said. He added that sustained foreign institutional investor (FII) inflows, earnings momentum and stable crude oil prices would remain important factors for the market outlook. "Going forward, sustained FII inflows, earnings momentum and stable crude prices will be crucial; investors should favour fundamentally strong stocks and avoid chasing sharp rallies," he said.

Commodities and Global Market Update

In the commodities market, gold prices gained 0.58 per cent to Rs 1,41,335 per 10 grams for 24-carat gold at the time of reporting. Silver prices also advanced 2.45 per cent to Rs 1,87,051 per kg. Brent crude oil prices rose more than 1 per cent to USD 92.55 per barrel at the time of reporting. However, crude prices have moderated compared to October. Meanwhile, most other Asian markets also closed in positive territory. Japan's Nikkei 225 gained 1.28 per cent to 61,244, while Singapore's Straits Times index advanced 0.69 per cent to 5,296. Taiwan's weighted index surged 3.49 per cent to close at 44,257, while South Korea's KOSPI index jumped 2.53 per cent to 5,375. However, Hong Kong's Hang Seng index declined 1.22 per cent to 24,262.

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