IT rally lifts Sensex over 700 points, Nifty reclaims 24,200; Infosys, TCS, L&T, Airtel, TechM lead gains

Indian equity benchmarks staged a strong rebound in opening trade on Wednesday, with the Sensex surging more than 700 points and the Nifty reclaiming the 24,200 mark, tracking upbeat global cues from Wall Street and a rally in information technology stocks. The gains were supported by broad-based buying across large-cap counters, even as investors remained focused on the U.S. Federal Reserve's policy outcome and monitored rising crude oil prices amid renewed Middle East tensions.

At around 9:44 a.m., the BSE Sensex was up 769.69 points, or 1%, at 77,535.61, while the Nifty 50 advanced 217.25 points, or 0.91%, to 24,202.60. During early trade, the 30-share Sensex rallied as much as 795 points, while the Nifty 50 gained 231 points at its intraday high.

Broader markets also traded in positive territory, with the Nifty Midcap 100 and Nifty Smallcap 100 rising around 0.6% each. Meanwhile, the India VIX slipped more than 2% to 12.30, indicating easing market volatility.

On the Sensex pack, 23 of the 30 stocks traded in the green, led by technology stocks. Infosys surged more than 3%, followed by Larsen & Toubro, TCS, Hindustan Unilever, and HDFC Bank, which gained between 1.5% and 3%. Other notable gainers included Tech Mahindra, Bharti Airtel, HCLTech, ITC, and Reliance Industries.

On the downside, InterGlobe Aviation (IndiGo), BEL, Power Grid, Asian Paints, Titan, and Trent were among the early losers, declining by up to 1%.

Sectorally, Nifty IT emerged as the top performer, climbing more than 2%, while the FMCG, Pharma, Healthcare, Metal, and Auto indices also traded higher. Realty was the only major sectoral index in the red.

Fed policy in focus

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the market's prolonged range-bound phase could eventually break on the upside, supported by reasonable valuations in large-cap stocks.

"The present range-bound construct of the market is likely to be broken on the upside, assisted by the fairly valued stocks in the Nifty. Big-conviction buying by FIIs will depend on clarity regarding crude oil prices and the progress of the monsoon," he said.

He added that investors would closely monitor the U.S. Federal Reserve's policy announcement later in the evening.

"The Fed is widely expected to keep rates unchanged, and this is already priced into the market. However, if the Fed delivers a surprise rate hike, it could have mildly negative implications for emerging markets, including India, as higher U.S. bond yields may attract foreign capital away from equities," Vijayakumar noted.

Global cues remained supportive after the Dow Jones Industrial Average rallied more than 530 points overnight, posting its strongest single-day gain in nearly a month, helped by upbeat earnings from companies such as Coca-Cola and Sherwin-Williams. However, the Nasdaq Composite ended slightly lower as continued weakness in semiconductor and AI-related stocks weighed on the technology sector.

In the overnight trade, Apple briefly crossed the $5 trillion market capitalization milestone after its shares hit a record high, reclaiming its position as the world's most valuable publicly listed company.

Middle East tensions, crude spike keep investors cautious

Despite the positive global setup, market participants remain cautious over geopolitical tensions in the Middle East. Fresh attacks involving Iran-linked militant groups have renewed concerns over global energy supplies, pushing crude oil prices higher after a three-day decline.

Ponmudi R, CEO of Enrich Money, said geopolitical developments continue to pose a key risk for markets.

"Despite the positive opening cues, underlying sentiment is expected to remain cautious as geopolitical tensions in the Middle East continue to dominate investor focus. The rebound in crude oil prices reflects renewed concerns over supply disruptions and could keep markets volatile ahead of the Fed's policy outcome."

Investors will now watch the Fed's policy statement and commentary for clues on the future interest-rate trajectory, along with movements in crude oil prices and foreign institutional investor flows, which are expected to dictate the near-term direction of domestic equities.

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