Market Wrap: Sensex adds 63 points, Nifty above 25,200 as PSU banks, IT stocks lift D-Street

Indian benchmark indices Sensex and Nifty closed marginally higher on Wednesday, recouping early losses as gains in PSU banks and IT stocks helped offset broader regional weakness stemming from renewed concerns over rising U.S. inflation.

The Sensex rose 63.57 points, or 0.08%, to close at 82,634.48, while the Nifty 50 gained 16.25 points, or 0.06%, to settle at 25,212.05.

Sectoral Watch

Among the 30-stock Sensex pack, shares of Mahindra & Mahindra, Tech Mahindra, State Bank of India, Infosys, Adani Ports, and ITC were the top gainers, rising between 0.6% and 2.3%.

On a sectoral basis, the PSU Bank index advanced 1.8%, led by a nearly 2% gain in SBI after it approved raising up to Rs 20,000 crore via bonds for FY26.

In contrast, the metal index slipped 0.5% as a stronger U.S. dollar made commodities more expensive for holders of other currencies.

Among individual stocks, ITC Hotels surged 4.5% after reporting a rise in quarterly profit, while Network18 Media & Investments jumped 13.3%, boosting the media index by 1.3%, after posting its first quarterly profit in 12 quarters.HDB Financial dropped 3.1% following a decline in June-quarter profit, weighed down by higher provisions for bad loans.Dixon Technologies rose 1.8% after announcing it had signed a binding term sheet to acquire a 51% stake in Kunshan Q Tech Microelectronics (India).

Expert Views

India’s macroeconomic outlook remains strong, supported by easing inflation, lower interest rates, a healthy monsoon, and softer oil prices and a drop in inflation in eight straight months has provided a push to the market, said Vinod Nair, Head of Research, Geojit Investments, adding that “however, investors are showing a mix of optimism and caution in the relief rally to assess the Q1FY26 corporate earnings, as an upgrade in earnings is essential in the premium valued stock market.”

On a technical basis, the Nifty continues to face resistance at the crucial level of 25,260, which is the 38.20% Fibonacci retracement of the recent decline from 25,669, indicating indecision among investors at the higher level, said Rupak De, Senior Technical Analyst at LKP Securities, adding that on the daily chart, the index has been sustaining above the 50-day moving average (50DMA), signifying a positive short-term trend.

“As long as it remains above 25,000 on a closing basis, the sentiment is likely to stay bullish, with a “buy on dips” strategy appearing favourable. On the higher side, a decisive move above 25,260 could trigger a rally towards 25,500 and beyond,” said De.

Global Markets

World stocks were mixed on Wednesday as a rise in U.S. inflation weighed on sentiment, dragging most Wall Street indices lower even as gains in Nvidia pushed the Nasdaq to another record high.

U.S. inflation accelerated to 2.7% in June from 2.4% in May, prompting concerns about the Federal Reserve’s policy path.

In Europe, Germany’s DAX rose 0.1%, Britain’s FTSE 100 added 0.1%, while France’s CAC 40 slipped 0.1%.

Asian markets were largely weaker, with Hong Kong’s Hang Seng falling 0.3%, South Korea’s Kospi down 0.9%, and Japan’s Nikkei 225 and China’s Shanghai Composite each dipping marginally.

Investor sentiment was also dampened by trade concerns after Donald Trump said the U.S. would soon notify smaller countries of updated tariff rates, reiterating his threat to impose a 30% tariff on imports from Mexico and the EU starting August 1.

Meanwhile, gold rose 0.5% to $3,338.75 an ounce as investors sought safe-haven assets.

Crude Impact

Oil prices were little changed on Wednesday as signs of stronger Chinese crude demand were offset by investor concerns over the broader economic fallout from potential U.S. tariffs.

Prices have remained range-bound, with robust travel-driven demand during the Northern Hemisphere summer counterbalanced by fears that trade tensions could dampen global growth and fuel consumption.

By 0844 GMT, Brent crude futures slipped 17 cents, or 0.3%, to $68.54 a barrel, while U.S. West Texas Intermediate (WTI) crude edged down 11 cents, or 0.2%, to $66.41.

Rupee vs Dollar

The Indian rupee slipped 0.1% on Wednesday to close at 85.94 against the U.S. dollar, pressured by rising U.S. Treasury yields after U.S. inflation data dampened hopes of near-term rate cuts by the Federal Reserve. The data signaled that tariffs were beginning to feed into prices, strengthening the dollar.

The greenback, which hit multi-week highs following Tuesday’s data, held steady on Wednesday, with the dollar index largely unchanged at 98.547.

(With inputs from agencies)