Indian equities witnessed a significant rebound on Wednesday, recovering from the sharp losses experienced in the prior session. The previous decline was fueled by concerns regarding U.S. President Trump's tariff policies, subpar corporate earnings, and persistent withdrawals of foreign funds.
The S&P BSE Sensex climbed by 566.63 points, translating to a rise of 0.75%, closing at 76,404.99. Meanwhile, the NSE Nifty index also closed higher, registering an increase of 130.70 points or 0.57%, to settle at 23,155.35.
Despite the gains in major indices, the mid-cap and small-cap sectors faced significant selling pressures, with the BSE mid-cap and small-cap indices declining by 1.20% and 1.56%, respectively. Market breadth on the BSE was predominantly negative, as 2,791 shares declined against 1,152 shares that advanced, with 116 shares ending unchanged.
Technology stocks emerged as the top performers, buoyed by Netflix Inc.'s report of its largest-ever quarterly subscriber growth and President Trump's announcement of a collaborative venture with OpenAI, Oracle, and Softbank to invest substantially in artificial intelligence infrastructure within the United States. Consequently, shares of Tech Mahindra, TCS, Infosys, and Wipro surged between 2-4%.
HDFC Bank saw a 1.8% rise following a Q3 profit report that exceeded expectations. Shares of Hindustan Unilever rose in anticipation of its earnings announcement.
Globally, market sentiments were mixed. Chinese and Hong Kong stock markets witnessed declines after Trump's threat of imposing tariffs on the EU and China as part of efforts to tackle trade imbalances and fentanyl trafficking. The U.S. dollar experienced a slight downturn, driven by speculation that the Federal Reserve might cut interest rates more swiftly and sooner than anticipated this year.
Gold prices hit an 11-week high, while oil prices continued their steep decline following President Trump's declaration of a national energy emergency, aiming to enhance energy production. This move has raised concerns over a potential increase in U.S. oil and gas output amid a globally anticipated supply surplus for the year.
