The Indian stock market closed higher on Wednesday, marking a positive trend as the Nifty index recorded its sixth consecutive gain. This upward momentum was bolstered by comments from U.S. President Donald Trump regarding ongoing trade negotiations with India, which fostered renewed market optimism. Additionally, expectations surrounding potential cuts to the goods-and-services tax and prospects of a U.S. interest rate cut supported investor sentiment.
The S&P BSE Sensex rose by 323.83 points, or 0.4%, finishing at 81,425.15, while the NSE Nifty 50 increased by 104.50 points, or 0.42%, to close at 24,973.10. Analysts noted that the recent trade discussions between India and the U.S. were pivotal in enhancing market sentiment. Vinod Nair, Head of Research at Geojit Investments, emphasized that expectations of stronger earnings in the latter half of FY26, driven by GST rationalization and monetary easing, are contributing to resilient valuations.
The IT sector, in particular, demonstrated substantial outperformance as anticipation of a potential Federal Reserve rate cut next week fueled optimism. Investors remained focused on the ongoing trade talks between India and the U.S. for indications of a constructive resolution to related tariff issues.
In the U.S. markets, the S&P 500 and the Nasdaq achieved fresh intraday record highs, primarily driven by a remarkable surge in the stock of cloud computing giant Oracle, which spiked 41% to reach an all-time high. This increase marked Oracle’s largest single-day percentage gain since 1992 and was influenced by a reported surge in demand from AI firms for its cloud services. Oracle’s market valuation soared to $969 billion, surpassing that of giants like Eli Lilly, JPMorgan Chase, and Walmart, and nearing Tesla’s $1.14 trillion valuation. Supporting this bullish trend, Nvidia, Advanced Micro Devices, and Broadcom also saw significant stock gains, leading to a boost in the technology sector.
Contrarily, European markets experienced a reversal, closing slightly lower, as gains from the Spanish fast-fashion retailer Inditex were offset by a dip in technology stocks. The pan-European STOXX 600 index fell 0.05% to 552.12 points, despite a 6.4% increase in Inditex’s stock after it reported improved sales following months of poor demand. Spain’s benchmark index benefitted, climbing 1.25% to a two-week high.
Technical analysts in India noted that the Nifty index has maintained above the critical 21 Exponential Moving Average (EMA), reflecting positive momentum. Rupak De from LKP Securities stated that achieving and sustaining levels above 24,820–24,750 could pave the way for the Nifty to reach 25,160 and beyond.
In terms of market activity, Waaree Energies, HDFC Bank, Kotak Mahindra Bank, and Oracle Financial Services Software reported some of the highest turnover on the BSE. On the NSE, Vodafone Idea had the highest trading volume, followed by YES Bank and Welspun India.
Strong buying interest was observed in stocks such as Oracle Financial Services Software, Welspun India, and Vardhman Textiles, among others, while certain stocks like Eternal and NTPC faced notable selling pressure. Market sentiment remained bullish overall, with 2,410 out of 4,282 stocks traded on the BSE showing advances, against 1,717 declines.
As over 118 stocks reached their 52-week highs, including prominent names like Muthoot Finance and Maruti Suzuki, the trading day concluded with a general sense of optimism in the market.
