Indian stocks experienced a solid upward movement on Wednesday, offsetting losses from the preceding three sessions. This comes as markets evaluate the performance of the domestic economy amidst ongoing economic uncertainty. The BSE Sensex rose by 0.5% to conclude at 81,570, while the NSE Nifty 50 similarly increased by 0.5%, closing at 24,815.
Pharmaceutical firms spearheaded these gains, reflecting a positive trend from their European and US counterparts in the prior session. This optimism followed the US Department of Health's announcement that its planned drug price reductions would not apply to generic drugs—a significant segment produced by India. Among the notable performers, Sun Pharmaceuticals saw an increase of 1.7%.
Moreover, financial institutions, including banks and lenders, also posted notable gains. Bajaj Finserv, Bajaj Finance, and HDFC Bank registered growth ranging from 1.5% to 0.6%. Looking ahead, tomorrow's release of preliminary Purchasing Managers’ Index (PMI) data for May will provide further insights into how companies are managing the external trade challenges in relation to the resilience of the domestic economy and the potential for lower interest rates.
