The Indian equity benchmarks witnessed a spectacular late-session recovery on Wednesday, with the BSE Sensex surging 890 points and the Nifty50 reclaiming the psychological 24,300 mark.
Despite a 6% spike in the India VIX, which signaled heightened volatility, buying interest in the final hour of trade helped the indices finish near their intraday highs. While heavyweights like Reliance and Infosys faced pressure, the broader market showed resilience, with the Nifty Midcap and Smallcap indices gaining 1% each.
Banking and Auto Leads the Charge
The rally was largely anchored by HDFC Bank, which saw its shares surge 3%. The spike followed reports that an independent review by legal firms Trilegal and Wadia Ghandy & Co found no major governance concerns following the exit of Chairman Atanu Chakraborty in March. In the auto sector, Mahindra & Mahindra (M&M) gained nearly 3% as top brokerages like Nomura and Jefferies maintained “Buy” ratings, citing a strong SUV growth outlook and a 16th consecutive quarter of double-digit EBITDA growth, despite a cautious outlook for the tractor segment due to weak monsoon forecasts.
Sectoral Performance and Brokerage Moves
Except for power, FMCG, and energy, most sectoral indices ended the day in the green. Coforge emerged as a top performer in the IT space, soaring nearly 10% after HSBC maintained a “Buy” rating, noting an improved margin guidance and a robust order book. Meanwhile, Larsen & Toubro (L&T) faced some headwinds in its Q4 EBITDA due to geopolitical conflicts in the US, Iran, and Israel, but Jefferies remained bullish with a target of Rs 4,885, highlighting the company’s ambitious “Lakshya 2031” plan focusing on data centers and semiconductors.
Market Outlook and Key Gainers
The day’s biggest gainers on the Nifty included Interglobe Aviation, Trent, Tata Motors, and Adani Enterprises. On the flip side, ONGC, Reliance Industries, and Power Grid were among the notable laggards. Brokerage activity remained high as CLSA maintained an “Outperform” rating on PNB, noting decent asset quality despite a slight disappointment in Net Interest Income (NII). As the market moves forward, investors are keeping a close watch on the transition to clean energy and the semiconductor expansion plans unveiled by India’s industrial giants.