MUMBAI: Equity markets posted their biggest single-day gain in a month on Wednesday, snapping the record 10-day losing streak of Nifty. The index climbed 1.2 per cent to 22,337, driven by broad-based buying after a sharp correction and improved global sentiment.
The Sensex also advanced 1.01 per cent to 73,730, while the total market capitalisation of BSE-listed firms rose by Rs8 trillion to Rs393 trillion. With Nifty gaining 1.2 per cent, India’s market capitalisation remains down by Rs49 trillion so far in 2025.
Both indices had hit their lowest levels in nine months in the previous session. The rebound was fueled by hopes of easing trade tensions and bargain hunting after sustained declines.
Global cues and sectoral gains
US Treasury Secretary Howard Lutnick hinted at a partial rollback of tariffs on Canada and Mexico, while China announced stimulus measures to counter the impact of escalating trade tensions with the US.
Metal stocks led the rally, with the Nifty Metal Index surging 4 per cent. According to Siddhartha Khemka, head of research and wealth management at Motilal Oswal Financial Services, China’s move to restructure its steel industry and cut output is expected to curb cheap steel dumping into India, benefiting domestic players.
FPI selling continues
Foreign portfolio investors (FPIs) remained net sellers, offloading Rs2,895 crore worth of equities, while domestic institutions provided support with net purchases of Rs3,371 crore.
Despite the bounce, concerns persist over US trade tariffs and weakening corporate earnings.
Ajit Mishra, SVP of research at Religare Broking, cautioned against reading too much into the one-day surge and advised waiting for confirmation before making fresh bets.
“We remain stock-specific, favouring banking, financials, and metals for long trades while being selective in other sectors,” he said.
Market breadth was strong, with 3,220 stocks advancing and 806 declining. Analysts see resistance for Nifty in the 22,500-22,700 range if the recovery extends further.
