Sensex Soars 889 Points, Nifty Reclaims 24,250 as FIIs Return and IT Stocks Shine

Indian equity markets staged a powerful comeback on Wednesday, with benchmark indices posting their biggest single-day gains in recent sessions as foreign institutional investors (FIIs) returned to buying and heavyweight IT and banking stocks lifted overall sentiment.

The BSE Sensex surged 888.68 points (1.16%) to settle at 77,654.60, after climbing nearly 1,000 points during intra-day trade. Meanwhile, the NSE Nifty50 advanced 264.85 points (1.10%) to close at 24,250.20, reclaiming the psychologically important 24,250 mark.

The rally was largely driven by buying in blue-chip stocks including HDFC Bank, Infosys, Larsen & Toubro, Tata Consultancy Services, HCL Technologies, Bharti Airtel, Tata Steel and Trent. Among the biggest gainers, Hindustan Unilever jumped 4.7%, while Infosys climbed 4.5% as investors continued to bet on the technology sector following encouraging quarterly earnings.

Larsen & Toubro also gained over 2.5% after reporting its quarterly financial results, adding further strength to the market rally.

On the other hand, Adani Ports emerged as the biggest loser among Sensex constituents, falling over 3%. Mahindra & Mahindra also ended lower after announcing the transfer of its truck and bus business to SML Mahindra for Rs 525 crore. However, SML Mahindra shares hit the 20% upper circuit, reflecting strong investor enthusiasm for the restructuring move.

Investor confidence received a boost after FIIs purchased equities worth Rs 755.33 crore in the previous trading session, reversing their recent selling trend. Market experts said healthy domestic fundamentals, strong corporate earnings, a firmer rupee and sustained buying in IT stocks outweighed weak global cues.

Sector-wise, Information Technology led the gains with a 2.4% rise, followed by Metal, Telecommunications, Commodities, Healthcare, Banking and Financial Services. Broader markets also ended in positive territory, with the BSE SmallCap Select Index rising 1.18% and the MidCap Select Index gaining 0.27%.

Globally, markets remained mixed. South Korea's KOSPI witnessed a sharp fall of nearly 6%, while Japan's Nikkei also ended lower. In contrast, markets in China and Hong Kong finished higher. Investors also kept a close watch on the US Federal Reserve's policy decision, while Brent crude oil climbed nearly 4% to around USD 87.28 per barrel, reflecting renewed geopolitical concerns.

Despite lingering global uncertainties, Wednesday's rally highlighted the resilience of Indian equities, with renewed foreign investment and upbeat earnings reviving investor optimism on Dalal Street.