Indian Stock Markets Extend 3-Day Rally, IT Stocks Lead Gains

India’s equity markets continued their strong recovery for the third consecutive session , with benchmark indices Sensex and Nifty rising nearly 1 per cent on Wednesday. The rally was driven by IT stocks, easing crude oil prices, and supportive global cues , signalling improving investor sentiment after recent volatility.

The BSE Sensex jumped 633 points to close at 76,704 , after briefly crossing the 77,000 mark intraday . Meanwhile, the NSE Nifty gained 196 points to settle at 23,777 , extending its upward momentum. Market experts said the rise was backed by value buying, short covering, and broad-based participation across sectors.

Among the top gainers , Tech Mahindra, Infosys, HCL Tech, TCS, Mahindra & Mahindra, Adani Ports, and Axis Bank led the rally, reflecting strong traction in technology and cyclical stocks . On the other hand, NTPC, Hindustan Unilever, Sun Pharma, and HDFC Bank ended in the red, with FMCG and pharma stocks underperforming .

Global signals remained positive, with Asian markets like Nikkei and Kospi posting sharp gains , while US and European markets traded higher . A slight dip in Brent crude to around $103 per barrel also supported sentiment by easing inflation concerns .

Institutional activity played a crucial role in sustaining the rally. Foreign Institutional Investors (FIIs) sold equities worth ₹4,741 crore , continuing their cautious stance. However, Domestic Institutional Investors (DIIs), largely mutual funds, bought ₹5,225 crore , effectively offsetting foreign outflows.

Recent data shows mutual funds increased their cash holdings to ₹2.09 lakh crore in February , indicating a defensive yet opportunistic strategy amid market volatility. At the same time, steady SIP inflows are providing consistent liquidity support to the markets.

The rally was broad-based , with midcap and smallcap stocks also gaining , reflecting improved risk appetite among investors. However, analysts remain cautious, noting that persistent FII selling and global uncertainties could keep markets volatile.

Overall, the trend highlights the growing strength of domestic investors , with mutual funds emerging as a key stabilising force in India’s equity markets.