The BSE Sensex rallied nearly 800 points on Wednesday, closing at 76,991, as a confluence of domestic and global factors lifted market sentiment. The Nifty50 gained 198 points to settle at 24,022, according to a report by The Times of India. Among Sensex constituents, IndiGo and Trent emerged as the top gainers, rising around 4% each. Tech Mahindra, Bajaj Finance, ICICI Bank, and Infosys posted gains of nearly 3%. On the losing side, Maruti Suzuki, NTPC, Tata Steel, and Bharat Electronics declined by close to 2% each.
Global market recovery
Indian equities had come under pressure in the previous session after South Korea's Kospi index tumbled 10% on overheated valuation concerns. However, sentiment improved on Wednesday as the Kospi staged a strong recovery, rising around 3%, The Times of India reported.
RBI Governor eases rate hike fears
Reserve Bank of India Governor Sanjay Malhotra indicated that discussions around further interest rate increases may be premature, according to the report. “We do not see signs of inflation generalizing yet,” Malhotra said. The central bank is monitoring the broader economic impact of higher oil prices before deciding on future policy.
Crude oil slides below $77
Oil prices continued to weaken, remaining near four-month lows. Brent crude futures fell nearly 1% to around $76 per barrel, while US West Texas Intermediate (WTI) crude declined more than 1% to trade near $72 per barrel. The decline follows indications that more tankers stranded in the Gulf could soon resume transit through the Strait of Hormuz, the report added.
Optimism over India-US trade pact
Market sentiment was also supported by growing expectations of a trade agreement between India and the United States. Bethany Poulos Morrison, US Deputy Assistant Secretary of State, said the two countries are “very, very close” to finalising a landmark bilateral trade deal that would provide reciprocal market access. Separately, Commerce Minister Piyush Goyal met US Trade Representative Jamieson Greer as negotiations intensify ahead of the July 24 expiry of Washington’s temporary 10% tariff on imports from trading partners.
Continued foreign buying
Foreign institutional investors remained net buyers for a third straight session, purchasing shares worth ₹18 crore despite the sharp market decline in the previous session. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the pace of foreign selling appears to be easing, a trend he described as constructive for the market.
IT and banking stocks drive rally
The rally was largely driven by gains in heavyweight information technology and private banking stocks. The Nifty IT and Nifty Private Bank indices rose around 2% each. Among individual banking stocks, ICICI Bank and HDFC Bank gained as much as 3%, while Axis Bank and Kotak Mahindra Bank advanced more than 1%.
Table: Key market movers on June 24
| Stock | Movement |
|---|---|
| IndiGo | +4% |
| Trent | +4% |
| Tech Mahindra | +3% |
| ICICI Bank | +3% |
| Infosys | +3% |
| Maruti Suzuki | -2% |
| NTPC | -2% |
| Tata Steel | -2% |
| Bharat Electronics | -2% |
The rally underscores easing macroeconomic concerns and positive policy signals. Investors will now watch the July 24 tariff deadline and the RBI’s next monetary policy decision for further direction.
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