Indian stock markets witnessed strong buying on Wednesday as benchmark indices extended their rally despite concerns over global market weakness, rising crude oil prices and uncertainty surrounding the US Federal Reserve’s monetary policy decision.
The BSE Sensex gained 876 points, or 1.14%, to touch an intraday high of 77,641, while the NSE Nifty 50 climbed 250 points, or over 1%, to reach 24,203. The rally marked the fourth consecutive session of gains for the market.
Information technology stocks emerged as the biggest contributors to the upward move. Investors turned towards Indian IT companies after a significant correction earlier in the year improved valuations.
A selloff in global technology stocks also increased the attractiveness of traditional Indian IT service providers.
The Nifty IT index gained nearly 3% during Wednesday’s session, extending its four-day rally to nearly 9.8%. Major IT companies including Infosys, TCS, Wipro and HCL Technologies recorded gains between 2% and 4%.
Infosys and TCS were among the top contributors to the benchmark indices, along with heavyweight stocks such as HDFC Bank and Reliance Industries.
Market sentiment was also supported by better-than-expected first-quarter results from several Indian companies.
Analysts said strong earnings performance has provided confidence about corporate growth prospects despite external challenges.
However, the recent rise in crude oil prices remains a concern for investors. Oil prices jumped nearly 5% to around $87 per barrel after a period of decline, raising worries about inflation and market stability.
Investors are also closely watching the US Federal Reserve’s interest rate decision. While most analysts expect the Fed to maintain existing rates, any unexpected increase could impact emerging markets by encouraging foreign investors to shift funds towards US bonds.
Analysts also believe the sharp decline in Asian technology stocks, particularly in South Korea, could benefit Indian equities as investors may shift towards fairly valued domestic stocks.
Asian markets remained under pressure, with South Korea’s KOSPI falling 5% and Japan’s Nikkei declining 2% amid concerns over AI valuations and technology spending.