Sensex and Nifty 50 Rise as Indices Find Some Support

The Indian stock market observed a notable recovery on Wednesday as both the Sensex and Nifty 50 index closed over 1% higher. This surge came amidst positive investor sentiment driven by US Commerce Secretary Howard Lutnick's hint at possible tariff relief for Mexico and Canada. Despite today's rally, both indexes remain more than 5.7% down over the past month of trading, and broadly neutral over the past year.

The Sensex experienced a significant increase, gaining 740.30 points, or 1.01%, to close at 73,730.23. Similarly, the Nifty index ended at 22,337.30, marking an uplift of 254.65 points or 1.15%. This increase broke a 10-day losing streak for the Nifty, which had previously declined by 877 points, equating to a loss of 3.8%.

Psychologically important support levels for both indices held up on the day, with the 73,000 level for the Sensex, and the 22,000 level for the Nifty seeing interest. Both remain firmly below their respective 50 day moving averages, as bearish sentiment has held firm over recent firms.

Market analysts attributed this bullish trend to strong buying in auto, power, and tech sectors. Noteworthy gainers included Adani Ports, Tata Steel, Adani Enterprises, Mahindra & Mahindra, and Power Grid Corporation, with increases reaching up to 5.15%.

On the other side, several stocks witnessed declines. Bajaj Finance, Indian Bank, HDFC Bank, and Shriram Finance ended lower, with losses of up to 3.37%.

All sectoral indices on the NSE concluded in the green, with Nifty Auto, BSE Power, and BSE Metal emerging as top performers