After 3 straight sessions of losses, Indian markets bounced back sharply on Wednesday helped by strong buying from both domestic and foreign investors.

Global Factors Fuel the Rally

Crude oil prices fell due to peace talks between Russia and Ukraine, easing inflation worries. Hopes of interest rate cuts by the US Federal Reserve and the RBI in December also lifted market sentiment. Brent crude slipped 2.79% to $61.6 per barrel.

Indices Close Near All-Time Highs

The Sensex surged 1,022.50 points (1.21%) to close at 85,609.51, just 226 points away from its all-time high. The Nifty climbed 320.50 points (1.24%) to end at 26,205.30, only 10 points below its record level.

Both indices erased the losses made over the previous three days.

Record Buying by FIIs and DIIs

Foreign investors bought $535 million (₹4,778 crore) worth of equities, while domestic institutional investors (DIIs) bought ₹6,248 crore. For the first time ever, DII inflows have crossed ₹7 lakh crore in a single year, boosting market confidence.

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Broader Market and Sector Performance

Market breadth was strong with 2,800 stocks advancing versus 1,371 declining.
Midcap and smallcap indices also gained over 1%. Except telecom, all sectors ended with gains. Metals, oil & gas, consumer durables, energy, and capital goods led the rally.

Banking indices, the BSE Bankex and Bank Nifty hit new all-time highs.

Top Contributors to the Rally

Index heavyweights HDFC Bank, Reliance Industries, ICICI Bank, Infosys, and L&T contributed nearly 60% of the Sensex’s 1,000-point surge. Top gainers included Bajaj Finserv, Bajaj Finance, Tata Steel, Reliance Industries, and Sun Pharma.

Conclusion

The sharp rise in Sensex and Nifty shows renewed investor confidence driven by easing global pressures, strong institutional buying, and positive earnings expectations. With both indices near their all-time highs, market sentiment remains firmly optimistic as investors look ahead to possible rate cuts and continued economic momentum.

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