Stock Market Today: Indian stock market benchmarks Sensex and Nifty 50 opened sharply higher on Wednesday, buoyed by hopes of a potential India-US trade agreement. However, rising crude oil prices and elevated US bond yields remained key concerns that could limit further gains.
The BSE Sensex surged 829 points, or 1.1%, to an intraday high of 74,682.19, while the Nifty 50 climbed 232 points, or 1%, to 23,120.90.
At the opening bell, the Sensex stood at 74,337.93, compared with its previous close of 73,852.90. The Nifty 50 began trading at 23,016, against its previous close of 22,888.95.
Investors were also tracking the much-anticipated Jio Platforms IPO, which opened for subscription on Wednesday, alongside developments in the ongoing second-quarter earnings season.
Sectoral performance was broadly positive, led by information technology stocks. The Nifty IT index advanced 2.03%, while the Nifty PSU Bank and Nifty Metal indices gained 0.74% and 0.70%, respectively. The Nifty Media index was the sole major sectoral laggard, declining 0.15%.
Among Nifty 50 constituents, Infosys topped the gainers with a 2.47% rise, followed by Tata Consultancy Services (TCS), which advanced 2.08%, and UltraTech Cement, up 1.96%.
On the losing side, Bajaj Finance fell 2.32%, emerging as the biggest laggard on the benchmark, while Bajaj Finserv slipped 0.49%.
“With Brent crude prices and US bond yields remaining elevated, the market is likely to remain under pressure. The sell-on-rally market construct will continue in the near term. However, the improving earnings growth, fair valuations of large-caps, and strong domestic liquidity will support the market on declines,” said V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Why is the stock market up today?
Indian equities advanced as hopes of an India-US trade agreement, the launch of Jio Platforms’ IPO, gains across Asian markets and a rally in IT shares lifted investor sentiment. Here are the four key developments supporting the market.
1. India-US trade deal
Hopes of progress in India-US trade negotiations strengthened after US President Donald Trump indicated that the two countries were close to reaching an agreement.
Addressing reporters at the Oval Office on Tuesday, Trump said discussions were progressing and suggested that the proposed pact would differ from previous trade agreements.
“They want to make a deal. We’re going to make a deal. Pretty close, yeah,” Trump said in response to a question.
He added, “It’s going to be a much different kind of deal than we’ve done.”
The comments came during US Secretary of State Marco Rubio’s visit to India. His discussions with Indian officials covered ways to expand bilateral cooperation in trade, energy, technology, defence and people-to-people ties.
2. Jio IPO opening
The opening of Jio Platforms’ much-awaited IPO put Reliance Industries Ltd (RIL) in the spotlight as investors assessed the significance of the offering for the conglomerate.
The public issue opened on October 21 and will close on October 23. The allotment is expected to be completed on October 26, with the shares scheduled to list on the BSE and NSE on October 28.
Jio Platforms aims to raise more than ₹30,000 crore, potentially making it India’s largest IPO by issue size. The offering would surpass Hyundai Motor India’s ₹27,800-crore IPO, which was launched in October 2024.
3. Rise in Asian stocks
A rebound in Asian equities added to the positive sentiment, with technology stocks gaining after stronger-than-expected earnings from companies benefiting from the artificial intelligence boom. US equity-index futures also advanced as investors returned to the technology trade.
South Korea’s Kospi climbed 3.7%, while Taiwan’s Taiex rose 1.4%, following upbeat results from SpaceX and Super Micro Computer Inc. The rally lifted the MSCI Asia Pacific Index by 1.1%, ending its two-session losing streak.
Nasdaq 100 futures gained 1%. In extended trading, SpaceX shares advanced 8.1%, while Super Micro Computer surged 16%.
Crude oil prices also rose, with Brent crude moving above $110 a barrel. Attacks on ships near the Strait of Hormuz heightened concerns about supply disruptions, while US industry data indicated a further decline in crude inventories. US Treasury yields recovered some ground after their previous session’s decline, and the dollar edged higher against most Group-of-10 currencies.
4. IT stocks jump
IT shares provided another source of strength for the domestic market as investors responded to encouraging quarterly earnings. However, elevated crude prices, high US bond yields and continued foreign investor outflows remained potential obstacles.
The IT index advanced 2.6%. L&T Technology Services led the gains, jumping 10.5% after reporting higher revenue and profit for the September quarter. Wipro, Infosys and TCS rose 3-4% each, while Tech Mahindra, HCL Technologies and Mphasis advanced more than 2% apiece.
TCS and HCL Technologies also posted earnings above expectations and indicated that business conditions were gradually improving, although uncertainty surrounding the IT sector continued.
“Since the two large laggard sectors – IT and banking- have performed well in Q2 and are attractively valued, further corrections in these sectors will be met with strong DII-led accumulation.
Since the Q2 results season has started on a positive note and some positive surprises are likely in the broader market, the market action, going forward, will be more stock-specific and results-sensitive. Despite the external headwinds, this is a stock picker’s market now,” said V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
