Indian equities extended their gaining streak for the third straight session on Wednesday, supported by broad-based buying across sectors, with IT and auto stocks leading the charge. The BSE Sensex rose 388 points, or 0.51%, to 76,458.95 in the early trade, while the Nifty 50 advanced 125 points, or 0.53%, to 23,707 level.

The broader market outperformed benchmark indices, with the Nifty Midcap 100 and Smallcap 100 surging as much as 1.25% and 1.37%, respectively, in the first hour of trade so far.

"Despite the uncertainty regarding the war markets have staged a bounce back. One factor that enabled this bounce back is crude remaining around the $102 level and fears of spiking above $120 not materializing,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

He added that the near-term scenario will be one of markets responding mildly positively to some good news and negatively to bad news. 

IT stocks lead the rally

The rally was largely driven by strong momentum in IT stocks, which continued their rebound after recent underperformance, ahead of the Federal Reserve policy decision later tonight. Shares of Tata Consultancy Services rose nearly 3%, while Infosys gained over 2.5%. Tech Mahindra and HCLTech also advanced more than 2% each, emerging as the top contributors to the Sensex gains.

Buying interest was also visible in cyclicals and infrastructure-linked stocks. Larsen & Toubro and UltraTech Cement traded higher, reflecting continued optimism around domestic capex trends. Auto major Mahindra & Mahindra gained over 1.7%, while InterGlobe Aviation rose nearly 2%.

Among other gainers, Reliance Industries, Adani Ports and Special Economic Zone, Power Grid Corporation of India, and Bharti Airtel saw steady buying interest.

However, gains were partially capped by weakness in heavyweight financial stocks. HDFC Bank declined over 1%, while ICICI Bank slipped nearly 1%. Kotak Mahindra Bank also traded marginally lower.

Sectorally, the rally was led by the Nifty IT index, which jumped 2.7%, amid strong buying in frontline IT names. The Nifty Auto index gained 1.4%, supported by buying in stocks like Mahindra & Mahindra.

Among others, the Nifty Media index rose 1.46%, while the Nifty Consumer Durables index gained 1.18%. Defensive and consumption-oriented pockets saw moderate gains, with the Nifty FMCG index up 0.21% and the Nifty Pharma index rising 0.54%.

Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth, said the near-term outlook suggests a range-bound market with a cautious bias, where global cues, crude oil movements and currency trends will remain the key drivers. “A decisive breakout above resistance or clarity on global macro triggers will be essential for a sustained directional move.”

Crude oil prices in international markets surged again to as high as $103 per barrel on Wednesday amid ongoing geopolitical tensions in the Middle East, which continues to disrupt energy markets. For India, sustained strength in oil remains a critical concern, given its implications for inflation, currency stability and corporate margins.

The Indian rupee continues to face pressure due to a combination of rising crude prices, persistent foreign institutional outflows and a resilient US dollar. The local currency opened at 92.42 per US dollar today, weakening by 5 paise compared with Tuesday’s close of 92.37, as uncertainty around global interest rates and geopolitical developments is keeping the dollar supported, limiting upside for emerging market currencies and adding to market caution.

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