Indian benchmark indices BSE Sensex and NSE Nifty ended higher in volatile trade on Wednesday, led by gains in metal, realty, oil & gas, and IT stocks. The broader market continued to outperform for the third consecutive sessions driven by surge in buying by retail investors amid sharp decline in both global and domestic risks.

The 30-share Sensex ended 182.34 points, or 0.22%, higher at 81,330.56, and the Nifty50 surged 88.55 points, or 0.36%, to close at 24,666.90.

Outperforming the benchmark indices, the BSE Midcap index climbed 1.2% and the BSE Smallcap index added 1.6%.

The total market capitalisation of the BSE-listed companies stood at ₹434.98 lakh crore, with 342 stocks hitting their upper circuit limits. On the other hand, 136 shares touched their 52-week low level. Out of 4,125 shares traded on the BSE, 2,863 advanced, 1,120 declined, and 142 ended unchanged.

India VIX, which indicates market volatility, fell 5.6% to 17.18 points, indicating growing optimism among investors with improving domestic as well as global market dynamics. 

Top gainers and losers

On the BSE Sensex pack, 21 out of 30 constituents ended in green zone, led by Tata Steel, Eternal, Tech Mahindra, Maruti Suzuki India, and Mahindra and Mahindra.

Tata Steel topped the gainers chart by rising 3.9%, while Eternal (Zomato) and Tech Mahindra gained over 2% each. Auto heavyweights Maruti and M&M added 1.5% each.

On the flip side, Asian Paints, Tata Motors, Kotak Mahindra Bank, NTPC, and Power Grid were among top five losers, falling in the range of 0.8-1.8%.

On the sectoral front, metal, realty, oil & gas, IT, energy and media were the top gainers, rising up to 2.5%. Among others, auto, healthcare, pharma, consumer durables, and FMCG indices rose up to 1%. Banking and financial services were on the losing side, falling marginally by 0.25%.

Among individual stocks, shares of Cochin Shipyard rallied nearly 14% intraday, extending gains for the fourth consecutive session, after the public sector company signed a deal with Dubai-based Drydocks World.

Shares of Gautam Singhania-led Raymond hit 5% upper circuit today as the stock turned ex-date for demerger of the real estate arm - Raymond Realty. 

What sparked rally in mid- and smallcap stocks?

"Market optimism is gaining momentum, driven by a sharp decline in both global and domestic risks. In this environment, the broader markets are on an upswing, supported by a strengthening recovery in local demand, as reflected in the March quarter corporate earnings,” said Vinod Nair, Head of Research, Geojit Investments.

“This has sparked a rally in mid- and smallcap stocks, which had underperformed earlier due to premium valuations, earnings downgrades, and moderation in foreign institutional investor (FII) and retail inflows,” he said.

According to Nair, midcaps are witnessing renewed interest, fuelled by marginal upgrades in recent earnings and the potential for a stronger rebound in FY26. Contributing factors include a consistent decline in inflation, rising disposable incomes, increased government spending, and falling interest rates.

Ajit Mishra – SVP, Research, Religare Broking, believes this is a healthy pause in Nifty following Monday’s rally, and it may continue for another session or two. In the meantime, traders should maintain a stock-specific approach and use this consolidation phase to accumulate fundamentally strong names, he said.

“Alongside key sectors, themes such as defense, railways, and PSU banking are also offering trading opportunities. However, it's important to maintain a balanced view and avoid excessive exposure,” he added.

Technically, the Nifty traded within a narrow range today, following two days of high volatile moves. "The short-term trend remains positive, as the index continues to remain above critical moving average, suggesting the market is catching its breath before the next move," said Rupak De, Senior Technical Analyst at LKP Securities.

“As long as the index stays above the crucial support level of 24,400, the bulls are likely to maintain their grip. In the near term, the index might move towards the 24,850–25,000 range. However, a drop below 24,400 could delay this upward trajectory and lead to further consolidation," he said.

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