Sensex jumps nearly 600 pts, Nifty reclaims 24,200 led by financials, auto; Bajaj Finance, IndiGo, SBI among top gainers

Indian equity benchmarks opened on a firm note on Wednesday, tracking positive cues from global peers, with the Sensex climbing nearly 600 points and the Nifty reclaiming the 24,200 mark in early trade. Buying in financial, banking and auto stocks lifted the benchmark indices, although gains were capped by weakness in IT shares and lingering concerns over elevated crude oil prices amid geopolitical tensions in West Asia.

In the first hour of trade, the BSE Sensex gained as much as 586 points, or 0.76%, to hit an intraday high of 77,641.86, while the Nifty50 rose as much as 166 points, or 0.69%, to touch a high of 24,218.15.

The broader market also remained buoyant. The Nifty Midcap 100 advanced 0.61%, while the Nifty Smallcap 100 gained 0.93%, indicating continued buying interest beyond the benchmark indices.

Meanwhile, India VIX, the market's fear gauge, slipped 3.47% to 13.27, suggesting easing volatility expectations.

On the Sensex, Bajaj Finance emerged as the top gainer, rallying 2.88%, followed by InterGlobe Aviation (IndiGo), Axis Bank, State Bank of India, UltraTech Cement, Eternal, Asian Paints and ICICI Bank. Other notable gainers included Reliance Industries, HDFC Bank, Mahindra & Mahindra, HCLTech and Kotak Mahindra Bank.

Among the losers, TCS declined 1.50%, making it the biggest drag on the index. Infosys, Tech Mahindra, Power Grid, NTPC, Hindustan Unilever and Tata Steel also traded lower in early deals.

On the sectoral front, financial stocks led the rally. The Nifty PSU Bank index gained 1.28%, followed by Nifty Financial Services, which rose 1.20%, and Nifty Private Bank, up 1.17%. Realty stocks also attracted buying interest, with the Nifty Realty index advancing 0.99%, while the Nifty Oil & Gas and Nifty Auto indices climbed 0.79% and 0.75%, respectively. Consumer Durables and Healthcare also traded in positive territory.

On the other hand, the Nifty IT index slipped 0.32%, making it the only major sectoral laggard. The Metal, Media and FMCG indices also traded marginally lower, reflecting selective profit booking.

Firm global cues lift sentiment

Indian markets mirrored the positive sentiment across global equities after softer-than-expected U.S. inflation data reinforced hopes that the Federal Reserve could adopt a more accommodative policy stance.

Overnight, Wall Street ended higher, with the S&P 500 gaining 0.38% and the Nasdaq Composite advancing 0.90%, supported by strength in technology stocks. Investor sentiment improved after U.S. consumer price data came in below expectations, reducing concerns over aggressive monetary tightening.

Asian markets also traded mostly higher on Wednesday, following the overnight rally on Wall Street. However, gains remained measured as investors continued to monitor developments in West Asia and their potential impact on energy prices.

Crude oil remained a key area of concern. Brent crude traded around $85-86 per barrel after briefly surging to a one-month high of $86 following renewed military strikes involving the U.S. and Iran. Prices eased from their highs after U.S. President Donald Trump withdrew a proposed 20% transit fee on cargo passing through the Strait of Hormuz, opting instead to pursue investment agreements with Gulf nations. Nevertheless, elevated oil prices continue to pose an inflation risk for oil-importing economies such as India.

Uncertainties in West Asia remain a key concern

According to K. Vijayakumar, Chief Investment Strategist at Geojit Investments, uncertainty remains the defining feature of global markets.

"With the uncertainties in West Asia continuing and Brent crude trading around $86, there are no positives that can lift the market higher in the near term. President Trump's policy reversals have added to global uncertainty, making investment decisions increasingly challenging," he said.

Vijayakumar noted that domestic challenges such as higher retail inflation, which accelerated to 4.38% in June, and an 18% monsoon deficiency also warrant caution. However, he pointed to strong credit growth and robust demand in sectors such as automobiles as encouraging signs for the economy.

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