Indian equities pushed closer to all-time highs on Wednesday, overcoming early volatility as renewed interest in information-technology stocks and likely foreign inflows lifted sentiment.
The Nifty 50 rose 0.55 per cent to 26,052.65, while the BSE Sensex gained 0.61 per cent to 85,186.47, leaving both indices less than one per cent shy of their record peaks set in September 2024.
Gains were broad-based, with 13 of the 16 major sectors advancing. Mid-caps rose 0.2 per cent, although small-caps slipped 0.4 per cent.
Analysts said India may be seeing incremental foreign buying as global investors turn cautious on stretched valuations in artificial-intelligence-linked stocks in other markets, prompting a shift towards relatively stable emerging-market opportunities.
IT stocks were the day’s standout performers, climbing 3 per cent, led by a 3.7 per cent rise in Infosys. The country’s second-largest software exporter announced its Rs 180-billion share buyback would commence on 20 November, boosting investor appetite.
“The IT sector rallied on revived hopes of a Fed rate cut, supported by soft U.S. labour data and currency tailwinds, while PSU banks gained on merger-related news and improving fundamentals. Attention now turns to tomorrow’s FOMC minutes for further policy signals,” said Vinod Nair, Head of Research, Geojit Investments.
Global sentiment, however, remained subdued. U.S. equities fell overnight amid valuation concerns, while Asian markets were largely flat following a sharp correction in the previous session.
Investors worldwide are now focused on two key U.S. data points: the minutes from the latest Federal Reserve policy meeting and the delayed September non-farm payrolls report due Thursday.
Both will be central to gauging whether the Fed could move ahead with a rate cut in December. Market expectations of a 25-basis-point cut have softened over the past week. Higher U.S. rates typically reduce the appeal of emerging-market assets such as India.
In sectoral action, seafood exporters jumped as much as 10 per cent after reports suggested China had formally notified Japan of plans to halt imports, a move seen as potentially boosting Indian suppliers. |
