| The domestic equity benchmarks ended with major gains today, extending their winning streak to the third consecutive session. The Nifty settled above the 25,850 mark. Sentiment remained upbeat on optimism over a potential trade agreement with the U.S. and the reopening of the American government. Investor confidence was further supported by Bihar exit polls indicating a likely victory for the incumbent NDA alliance.
The barometer index, the S&P BSE Sensex zoomed 595.19 points or 0.71% to 84,466.51. The Nifty 50 index rose 180.85 points or 0.70% to 25,875.80. In three consecutive trading sessions, the Sensex and Nifty jumped 1.50% each.
In the broader market, the S&P BSE Mid-Cap index rose 0.44% and the S&P BSE Small-Cap index added 0.76%. The market breadth was strong.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tanked 3.04% to 12.11.
Among the sectoral indices, the Nifty IT index (up 2.04%), the Nifty Auto index (up 1.24%) and the Nifty Pharma index (up 1.00%) outperformed the Nifty 50 index.
Meanwhile, the Nifty realty index (down 0.49%), the Nifty Metal index (down 0.16%) underperformed the Nifty 50 index.
Economy:
India’s retail inflation eased sharply to a record low of 0.25% in October, down from 1.44% in September, as food prices continued to decline, according to data released by the Ministry of Statistics on Wednesday. This marks the lowest year-on-year inflation recorded in the current Consumer Price Index (CPI) series.
The government attributed the fall in both headline and food inflation to the combined impact of lower GST rates, a favourable base effect, and a drop in prices of key items such as oils and fats, vegetables, fruits, eggs, footwear, cereals, and related products.
Data showed that food prices fell 5.02%, while the food and beverages index declined 3.72% during the month, providing major relief to consumers.
Numbers to Track:
The yield on India's 10-year benchmark federal paper shed 0.32% to 6.478 from the previous close of 6.506.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 88.6525 compared with its close of 88.5000 during the previous trading session.
MCX Gold futures for 5 December 2025 settlement rose 0.32% to Rs 124,307.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.17% to 99.65.
The United States 10-year bond yield advanced 0.44% to 4.088.
In the commodities market, Brent crude for December 2025 settlement shed 57 cents or 0.87% to $64.59 a barrel.
Global Markets:
European stocks traded higher on Wednesday, extending the positive momentum seen earlier this week amid optimism that the U.S. government shutdown may end soon.
German inflation eased slightly to 2.3% in October, according to data released by the federal statistics office, confirming preliminary estimates.
Consumer prices, harmonised to compare with other European Union nations, had stood at 2.4% year-on-year in September. The European Central Bank (ECB) has kept interest rates unchanged since June, noting that monetary policy remains in a “good place.” Signs of easing inflationary pressures in the Eurozone’s largest economy suggest that the ECB may maintain its current policy stance for the foreseeable future.
Asia market ended higher on amid hopes that the record-setting U.S. government shutdown could be nearing an end.
Members of the House of Representatives prepared to vote on a measure that could restore funding to government agencies and end a shutdown that started on October 1 and is now the longest in U.S. history.
In the absence of data from federal government agencies, traders focused on weekly jobs data from ADP, opens new tab on Tuesday which showed private employers shed an average of 11,250 jobs a week in the four weeks ending on October 25.
Investors will be keeping a close eye on SoftBank shares as well as tech stocks in Asia after the Japanese giant said Tuesday it sold its entire stake in U.S. chipmaker Nvidia for $5.83 billion, as it looks to capitalize on its “all in” bet on ChatGPT maker OpenAI.
Overnight in the U.S., the three major averages closed mixed. The Dow Jones Industrial Average rallied to a fresh closing record Tuesday, while the Nasdaq Composite struggled as investors moved money away from technology stocks into other parts of the market that traded at lower valuations.
The 30-stock Dow rose 559.33 points, or 1.18%, to close at 47,927.96. The S&P 500 also rose 0.21% to finish at 6,846.61. However, the tech-heavy Nasdaq lost 0.25% to settle at 23,468.30. |