On Wednesday, Indian stocks experienced a modest rise, maintaining momentum from the previous session as investors continued to evaluate the implications of reduced US tariffs on the Indian economy. The S&P BSE Sensex edged up to 83,820, while the NSE Nifty 50 increased by 0.2% to 25,776. Earlier in the week, the US government lowered its tariffs on India from 50% to 18%, following an agreement reached between President Trump and Prime Minister Modi, which also sought to curtail India's purchases of Russian energy.
Traditional sectors experienced gains, notably with Maruti Suzuki advancing by 2%, leading the automotive sector. Similarly, Adani Ports rose by over 2%, while ICICI Bank and HDFC Bank both increased by more than 1.5%, spearheading the growth among financial institutions. Conversely, the technology sector faced a downturn, mirroring the challenges faced by the sector in the US. Infosys suffered a 7.3% decline, and TCS, HCL, and Tech Mahindra saw declines exceeding 4.5%. This repositioning away from software firms was attributed to rising competition posed by Anthropic AI agents.
