Broader markets shine as Nifty Midcap 100 and Smallcap 100 climb over 1.5%
The Indian stock market began the day on a positive note, riding on favorable global cues. Both the BSE Sensex and Nifty50 indices showed strength, with gains driven by key sectors and select stocks. By mid-morning, the sentiment remained optimistic as investors reacted to a mix of domestic and international developments.
Sensex and Nifty Show Resilience
At time of writing, the BSE Sensex was up by 220.10 points, trading at 76,950.18, marking a 0.29% increase. The Nifty50 index followed suit, rising by 76.90 points to reach 23,290.10, translating to a 0.33% gain. Market breadth leaned toward the positive, with a majority of stocks trading higher. While only six stocks on the Sensex traded in the red, gainers included Zomato, Adani Ports, SBI, and UltraTech Cement.
HDFC Life was the standout performer on the Nifty50, registering a 9.39% rise. On the other hand, Hindustan Unilever and Nestle India led the list of laggards. Gains were broad-based, supported by optimism in global markets.
Sectoral Indices in Focus
Sectoral indices revealed a mixed performance, with strength in banking, media, metals, and real estate sectors. The PSU Bank Index led the charge, advancing by 2.46%, followed by the Nifty Bank and Financial Services Index, which gained 1.10% and 1.15%, respectively. Gains extended to the IT, Auto, Consumer Durables, and Energy indices, each up by over 1%.
In contrast, the FMCG and Pharma indices showed mild declines, with losses of 0.24% and 0.14%, respectively. The Healthcare Index traded flat. Broader markets performed well, with the Nifty Midcap 100 climbing 1.50% and the Nifty Smallcap 100 rising 1.55%, signaling strong investor confidence beyond the blue-chip stocks.
Global Cues Drive Momentum
Overnight gains in Wall Street boosted sentiment in Asian markets, which in turn influenced Indian equities. The US benchmark indices rallied as inflation data pointed to the possibility of rate cuts by the Federal Reserve. Stellar quarterly earnings from major US banks, including JPMorgan and Goldman Sachs, added to the positive tone. Asian indices mirrored these gains, with South Korea’s Kospi, Japan’s Nikkei 225, and Hong Kong’s Hang Seng advancing significantly.
FPI Activity and Domestic Developments
Foreign portfolio investors (FPIs) have remained net sellers in Indian equities during 2025, continuing the trend from the previous year. By January 14, FPIs had offloaded shares worth Rs 30,307 crore, further selling Rs 4,534 crore on January 15. This selling pressure has contributed to a 1.8% Year-to-Date decline in benchmark indices.
Domestically, investor focus is shifting toward the December quarter earnings season. Major players such as Reliance Industries, Infosys, and Axis Bank are set to announce their results, which could dictate the market direction in the near term. Additionally, the Reserve Bank of India (RBI) has introduced daily variable rate repo auctions to address liquidity concerns, providing relief to the banking sector.
Currency and Commodity Markets
The Indian rupee staged a recovery, appreciating by 0.3% to close at 86.36 per dollar on Wednesday. This marked the currency’s best single-day gain in over seven months, buoyed by easing pressure from the dollar index. In energy markets, crude oil prices rallied, with US crude settling at $80.04 per barrel, supported by a draw in US stockpiles. Brent crude also gained, closing at $82.03 per barrel.
Gold prices strengthened, with spot gold rising to $2,695.21 per ounce. US gold futures saw a similar uptick, reflecting safe-haven demand amid ongoing economic uncertainties.
IPO Market Activity
In the primary markets, several IPOs garnered attention. The Stallion India IPO and Landmark Immigration IPO opened for subscription, while Rikhav Securities and Kabra Jewels IPOs entered their second day. Additionally, Laxmi Dental and Barflex Polyfilms were in focus as their allotment details were finalized.
Broader Outlook
The Indian stock market has shown resilience despite global and domestic challenges. The focus now shifts to upcoming earnings reports, global economic trends, and key policy decisions. Market volatility is expected to persist in the near term, influenced by factors such as the Union Budget, Federal Reserve actions, and geopolitical developments.
Overall, today’s trading session underscores the strength of key sectors and the importance of broader market participation. While challenges remain, optimism driven by positive global cues and strong domestic fundamentals continues to propel the Indian equity market forward.
