Indian equity benchmarks bounced back sharply and ended over half percent higher on Wednesday, driven by a rally in IT, TECK and Banking stocks and sustained buying from domestic institutional investors. Additionally, optimism over a potential India-US trade deal helped sustain buying interest. 

Some of the important factors in trade:

India's GDP growth likely to reach over 7.5% in Q2FY26: With the help of robust festive sales triggered by the GST rate cut in late September, a SBI research report has said that India's Gross Domestic Product (GDP) growth is likely to reach 7.5 per cent or more in the second quarter of the current fiscal (Q2FY26). 

India-US partnership remains strong, stable and continuously expanding: Union Minister of Commerce and Industry, Piyush Goyal has emphasised that the India-US partnership remains strong, stable and continuously expanding across strategic and economic sectors. 

India’s GDP growth to moderate to 7% in Q2FY26: Rating agency ICRA has projected India’s GDP growth to moderate to 7 per cent in Q2FY26, from 7.8 per cent in the previous quarter, amid lower government spending. Indian economy had expanded 5.6 per cent in the Q2 (July-September) of 2024-25 fiscal.

Aviation stocks in focus: Rating agency ICRA said that domestic aviation industry's net losses are projected to nearly double to Rs 9,500 to Rs 10,500 crore in the current fiscal ending March next year, mainly impacted by moderating passenger growth and higher costs due to aircraft deliveries.

Global front: European markets were trading mostly in green despite worries about an AI bubble, dwindling rate cut hopes and investor anxiety about the economic outlook. Asian markets ended mixed as investors awaited Nvidia earnings, the release of minutes from the Federal Open Market Committee meeting held on October 28, and the delayed September jobs report. 

Finally, the BSE Sensex rose 513.45 points or 0.61% to 85,186.47 and the CNX Nifty was up by 142.60 points or 0.55% to 26,052.65.  

The BSE Sensex touched high and low of 85,236.77 and 84,525.98 respectively. There were 20 stocks advancing against 10 stocks declining on the index.   

The broader indices ended mixed; the BSE Mid cap index rose 0.34%, while Small cap index was down by 0.39%.

The top gaining sectoral indices on the BSE were IT up by 2.92%, TECK up by 2.21%, Bankex up by 0.57%, Healthcare up by 0.25% and Auto up by 0.23%, while Energy down by 0.47%, Oil & Gas down by 0.38%, Realty down by 0.34%, Industrials down by 0.33% and Power down by 0.27% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Technologies up by 4.32%, Infosys up by 3.74%, TCS up by 1.99%, Hindustan Unilever up by 1.54% and Sun Pharma up by 1.39%. On the flip side, Tata Motors Passenger down by 2.79%, Maruti Suzuki down by 1.28%, Adani Ports &SEZ down by 0.83%, Bajaj Finance down by 0.67% and Asian Paints down by 0.66% were the top losers.

Meanwhile, Union Minister of Commerce and Industry, Piyush Goyal has emphasised that the India-US partnership remains strong, stable and continuously expanding across strategic and economic sectors. He assured that there is no reason for concern regarding the bilateral relationship and reiterated that the friendship between the two nations stands on firm pillars of democracy, diversity and a shared developmental vision. He added that the United States views India as a trusted partner, and both countries remain committed to expanding trade and commerce. Meanwhile, he said that the trade deal negotiations are a continuous process and India must safeguard its interests while balancing the sensitivities of farmers, fishermen, small industries and businesses.

Further, he projected that India is on track to become the world’s third-largest economy by 2027, citing strong banking systems, low inflation, controlled fiscal deficits, growing consumer sentiment and infrastructure expansion supported by GST reforms as key contributors to country’s robust economic fundamentals. He noted that India produces 2.4 million STEM graduates every year and continues to deepen partnerships with several developed countries through Free Trade Agreements, either concluded or under negotiation. He also highlighted the scale of India’s market and the pace of its growth, noting that the Indian economy has more than doubled in the last decade.

Highlighting India’ conducive business environment, he said that the country’s development potential rests on a secure nation, clean governance, decisive leadership and continuous reforms. Besides, the Government has been eliminating cumbersome compliances, reducing procedural burdens, decriminalising minor offences and enabling ease of doing business. He stated that India provides one of the greatest opportunities for global businesses and expressed readiness to work with US companies on new ideas, technology adoption and innovation across sectors such as artificial intelligence, quantum computing, design and advanced technologies. Moreover, India aims to benchmark itself against the world’s best and progress collectively towards the goal of becoming a developed nation. He has also expressed confidence that India will remain the fastest-growing large economy for many years.

CNX Nifty touched high and low of 26,074.65 and 25,856.20 respectively. There were 31 stocks advancing against 19 stocks declining on the index.    

The top gainers on Nifty were Max Healthcare up by 4.30%, HCL Technologies up by 4.19%, Infosys up by 3.74%, Wipro up by 2.14% and TCS up by 1.94%. On the flip side, Tata Motors Passenger down by 2.77%, Coal India down by 1.21%, Maruti Suzuki down by 1.19%, Bajaj Finance down by 0.77% and Adani Ports &SEZ down by 0.74% were the top losers.

European markets were trading mostly in green; UK’s FTSE 100 increased 7.21 points or 0.08% to 9,559.51 and Germany’s DAX gained 1.97 points or 0.01% to 23,182.50, while France’s CAC fell 15.33 points or 0.19% to 7,952.60.