Indian Benchmark Indices Hold Midday Gains After Diwali Opening, IT Stocks Drag

Indian benchmark indices maintained most of their opening gains during the midday session on Wednesday following the Diwali holiday. The Sensex traded at 81,961.89, up 855.24 points or 1.05 per cent, while the Nifty 50 stood at 25,270.25, up 225.60 points or 0.90 per cent as of 1.11 PM. Markets had opened sharply higher with the Nifty gap-opening near 25,338 and Bank Nifty near 60,525 before trimming some gains.

Broad market participation remained strong on the BSE. Out of 4,586 stocks traded, 2,959 advanced while 1,389 declined, and 238 remained unchanged. A total of 126 stocks hit fresh 52-week highs against 46 at 52-week lows. Additionally, 199 stocks were locked in upper circuits and 163 in lower circuits, bringing the total market capitalization of BSE-listed companies to ₹5,11,48,794 crore, or $5.45 trillion.

Mahindra & Mahindra led the Nifty 50 gainers, rising 4.38 per cent to ₹3,434.80 with a traded value of ₹1,192.19 crore. IndiGo followed closely, up 4.30 per cent to ₹5,663.50. Other notable gainers included Trent, Eicher Motors, and Axis Bank. Conversely, ICICI Bank recorded the heaviest trading value on the losing side, falling 1.24 per cent to ₹1,569.30. IT stocks faced downward pressure, with Tech Mahindra and TCS shedding value as the sector reacted to expectations of higher US interest rates following a hotter-than-expected US inflation print.

In the commodities market, WTI crude traded near $86.65, up 0.25 per cent, following a sharp decline over the preceding two sessions. Brent briefly dipped below $90 on Tuesday after remarks concerning the Iran conflict. MCX crude stood at ₹8,140, up 0.5 per cent. Precious metals experienced a partial recovery, with COMEX gold rising 0.65 per cent to $4,055 and COMEX silver gaining 2.4 per cent to $52.45.

The Indian rupee held steady near recent highs, trading around 93.85 against the US dollar. The domestic currency continued to draw support from strong foreign portfolio inflows and softer crude oil prices, which contributed to its strongest weekly advance of the year in the previous week.

"The post-Diwali momentum in the Indian equity markets reflects resilient domestic participation and strong sectoral movements, particularly in the auto and banking segments. However, ongoing volatility in the IT sector, driven by global macroeconomic factors like US inflation and interest rate expectations, underscores the need for cautious capital allocation. For businesses and investors alike, monitoring global commodity trends, especially crude oil prices and currency stability, remains crucial for navigating near-term market fluctuations." — Dr. Shishir Gupta, Founder & CEO, StartupLanes