Sensex Soars 740 Points, Nifty Snaps Losing Streak
Indian stock markets staged a significant recovery on Wednesday, providing a much-needed dose of optimism for investors. The benchmark Nifty50 index ended a 10-day decline, while the Sensex saw a substantial jump of over 700 points.
The S&P BSE Sensex closed the trading session with a gain of 740.30 points, reaching 73,730.23. The NSE Nifty50 also experienced a positive shift, settling 254.65 points higher at 22,337.30. The rebound wasn't limited to the main indices; broader market indicators also showed strong gains, giving a boost to the small-cap and mid-cap segments, which had been under pressure recently.
The positive momentum was evident across various sectors. The Nifty Auto, Nifty IT, and Nifty PSU Bank indices, in particular, registered notable increases, signaling a broad improvement in investor sentiment on Dalal Street.
Among the top performers on the Nifty50 were Adani Ports, Tata Steel, Adani Enterprises, Power Grid, and Mahindra & Mahindra (M&M). Conversely, Bajaj Finance, IndusInd Bank, HDFC Bank, Shriram Finance, and Maruti experienced declines, ending the day as the top losers.
Market analysts offered insights into the factors driving the turnaround. Manish Goel, Founder and Managing Director of Equentis Wealth Advisory Services, pointed to a combination of positive economic indicators. "Markets are entering a phase of renewed traction, driven by improving GDP growth, earnings recovery, and better liquidity conditions," Goel stated. He acknowledged the ongoing volatility in global trade, particularly referencing the impact of "Trump's tariff war" on economic dynamics. However, he emphasized India's resilience in the face of these challenges.
Goel also suggested that the recent downturn in corporate earnings may have reached its lowest point, with markets already factoring in downward revisions to earnings per share (EPS). "The worst may be behind us," he asserted, projecting earnings growth of 15% in FY26 and 14% in FY27. He further noted that the Nifty was trading at its "most reasonable valuations" in almost three years, currently at a price-to-earnings (P/E) ratio of 19.6x, presenting a "compelling case" for potential gains in the medium term. This confluence of factors, according to Goel, suggests a positive outlook for the Indian market.
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