Indian Markets End Higher; Defence Sector Shines, Broader Indices Outperform

Indian equity markets closed on a positive note Wednesday, buoyed by strong performances in the metal, real estate, and technology sectors. The domestic defence sector stood out, extending its winning streak for the third straight session, supported by consistent buying and growing investor confidence.

Despite facing intra-day volatility, market sentiment remained upbeat, pushing benchmark indices into the green. The BSE Sensex climbed 182 points, or 0.22%, to settle at 81,330.56, while the NSE Nifty rose 88 points, or 0.36%, ending the day at 24,666.

Analysts noted significant resistance at the 25,000 and 25,500 levels on the Nifty, with solid support seen at 24,000 and 24,500. The put-call ratio (PCR) stood at 0.72, indicating a mildly bearish undertone, according to Sundar Kewat of Ashika Institutional Equity.

Among Sensex stocks, Tata Steel led the gainers with a 3.88% surge, followed by Eternal (2.18%), Tech Mahindra (2.02%), and Maruti Suzuki India (1.66%). On the downside, Asian Paints was the top loser, falling 1.78% to ₹2,283.65. Tata Motors and Kotak Mahindra Bank also slipped, shedding 1.26% and 1.11%, respectively.

Broader markets outperformed the benchmarks, with the Nifty Midcap 100 rising 1.13% and the Nifty Smallcap 100 advancing 1.36%, signaling robust interest in mid- and small-cap stocks.

Investor sentiment received an additional boost from cooling retail inflation data. April’s price growth slowed to its lowest pace in over six years, primarily due to easing food prices. This development has raised hopes of a possible rate cut by the Reserve Bank of India.

Globally, softer-than-expected U.S. inflation figures further improved the market mood, as they diminished concerns over aggressive monetary tightening and increased the likelihood of a dovish pivot by the Federal Reserve.

Dilip Parmar of HDFC Securities noted that the easing of crude oil prices and the softening U.S. dollar provided further support, helping the rupee hold firm during intra-day trading.

With favorable domestic and global cues in play, analysts expect investor optimism to sustain in the near term.