The Indian stock markets shrugged off concerns over potential US tariffs and extended their gains for a second consecutive session on Wednesday. Strong performances in IT, auto, and consumer stocks drove the rally, with the S&P BSE Sensex surging 592.93 points to close at 76,617.44, while the NSE Nifty50 added 166.65 points to settle at 23,332.35.
Despite mixed global cues, analysts pointed to optimism surrounding India's economic resilience. Vinod Nair, Head of Research at Geojit Investments Limited, highlighted that investors remained confident due to the positive trajectory in India-US trade negotiations. Additionally, India's manufacturing PMI for March hit an eight-month high, fueling expectations of a robust Q4FY25 earnings season.
Among the Sensex gainers, Zomato led with a 4.92% jump, followed by Titan's 3.73% rally. IndusInd Bank gained 2.88%, while Maruti Suzuki and Tech Mahindra climbed 2.09% and 2.04%, respectively. On the downside, Nestle India saw the steepest decline, falling 1.36%, with Power Grid Corporation and UltraTech Cement slipping 0.88% each. Bajaj Finserv and Larsen & Toubro also posted minor losses.
Mid- and small-cap stocks continued their upward momentum, with the Nifty Midcap100 rising 1.61% and the Nifty Smallcap100 gaining 1.12%. Meanwhile, market volatility eased as India VIX fell by 0.43%, reversing some of the uncertainty from the previous session’s sharp spike.
Ajit Mishra, SVP, of Research at Religare Broking, cautioned that markets might react to further developments on US tariffs and global responses. He also noted that the upcoming weekly expiry could add some volatility. While advocating a hedged approach, Mishra acknowledged that stock-specific opportunities remain abundant for traders navigating the fluctuations.
