Broad-based buying helped Indian stock market benchmarks, the Sensex and the Nifty 50, snap their three-day losing streak on Wednesday, May 21, led by gains in select heavyweights such as HDFC Bank, ICICI Bank, and Bharti Airtel.
The Sensex closed 410 points, or 0.51 per cent, higher at 81,596.63, while the Nifty 50 ended 130 points, or 0.52 per cent, up at 24,813.45. The BSE Midcap and Smallcap indices rose by 0.90 per cent and 0.51 per cent, respectively.
The cumulative market capitalisation of BSE-listed firms rose to ₹441 lakh crore from ₹438 lakh crore in the previous session, thus making investors richer by about ₹3 lakh crore in a single session.
Indian stock market: 10 key highlights from the day
Here are 10 key highlights from the stock market today:
1. Sensex, Nifty 50 rise, but…
Wednesday’s gains in the market could be due to short covering after the recent correction, as the medium to long-term outlook of the domestic market remains positive.
However, uncertainty around India—US trade negotiations remains a key overhang that can limit gains in the short term.
“Markets exhibited a broadly positive undertone today; however, overall sentiment remained confined within a narrow range, indicating risk of ‘sell on rallies’ strategy in the near future amid escalating uncertainty around India-US trade negotiations. There is a growing perception that India may not derive the anticipated benefits initially projected during the peak of the tariff war, which has since de-escalated,” said Vinod Nair, Head of Research, Geojit Investments Limited.
Foreign institutional investors (FIIs) appear cautious after Moody’s recent credit rating downgrade. The US tax cut bill could widen the country’s fiscal deficit and potentially influence the policy stance of the US Federal Reserve.
“FIIs turned net sellers due to the concerns over the recent US credit rating downgrade. Tax cut plans in the US that could significantly widen the fiscal deficit and have an impact on the upcoming Fed policy next month. This change in stance hints at an increased probability of emerging risk-averse sentiment in the near term,” Nair said.
(This is a developing story. Please check back for fresh updates.)
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