The Indian stock market moved into the deep green on Wednesday, ending a two-session losing streak as positive global cues and other factors boosted investor sentiment.
Sensex gained over 600 points to 77,110, while Clever 50 rose more than 150 points to near 24,050 Wednesday afternoon. This came as India’s VIX, which measures market volatility, fell around 2% to 13.37. The significant gains added nearly Rs 2.5 lakh crore to the total market capitalization of all BSE-listed companies, taking it to around Rs 477 lakh crore.
Eternal shares rose over 4% to lead gains on Sensex. Asian paintings, Adani Ports And Hindustan Unilever Stocks, meanwhile, gained about 3% each to follow. Bucking the trend, IT stocks, notably Tech Mahindra And HCL Technologies fell 2-3% to result in losses.
Broader markets, however, underperformed benchmarks. The Nifty Midcap 100 and Nifty Smallcap 100 indices are up around 0.2% each. Sectorally, Nifty FMCG and Nifty Realty gained around 2% each to lead the gains, while Nifty Metal and Nifty IT fell almost 1% each. Around 1,914 stocks advanced on NSE, while 1,258 declined and 94 remained unchanged.
Here are the key factors driving the stock market today.
1) Massive purchases of FMCG stocks
The sharp gains in the stock market were driven by heavy buying in FMCG stocks. The Nifty FMCG index jumped over 2% today, ending a two-game losing streak. Dabour shares rose more than 5%, while those of Colgate Palmolive, Nestlé India, love meHindustan Unilever (THEM) And Godrej Consumer Products jumped about 3% each.
Anand Rathi in his latest note said that revenue growth remained stable for most FMCG players in Q1FY27 and is expected to accelerate further due to recent price hikes. “Despite the potential impact of El Nino on rural demand, we remain optimistic of steady volume growth along with moderate pricing power driving overall revenue. The recent fall in crude/crude oil derivative prices is likely to contribute to sectoral margin in the coming quarters. We like consumer players with superior execution and surprising earnings potential, i.e., MaricoGCPL and HUL in the large cap sector, and Ms. Bector Foods and Zydus Well-being in the small and mid-cap sector,” he said.
2) Global indicesDalal Street’s strong gains come after Wall Street ended the first half of 2026 on a positive note yesterday. The Dow Jones Industrial Average closed at a record high of 52,319.20, while the Nasdaq Composite climbed 1.52%.
Japan’s Nikkei gained about 1% while China’s Shanghai Composite gained 0.44%. The South Korean Kospi, however, fell by more than 2%.
3) Oil priceWhile oil prices have edged higher, Brent crude futures continue to hover around $73 per barrel. This figure is significantly lower than the levels above $120 a barrel it touched earlier this year after the closure of the Strait of Hormuz amid escalating tensions in the Middle East.
US President Donald Trump’s son-in-law Jared Kushner and special envoy Steve Witkoff arrived in Doha on Tuesday for what the White House called “high-level” talks. However, Iran and host country Qatar said the U.S. delegation would meet with mediators instead of holding direct talks with Iranian representatives.
Analysts lowered their oil price forecasts for 2026 for the first time since the start of the Iran war, following five consecutive monthly hikes, after the reopening of the Strait of Hormuz eased concerns about prolonged supply disruptions, a Reuters poll showed on Tuesday.
Why is caution necessary?Despite the renewed optimism that reigns on Dalal Street, a certain caution is necessary. VK Vijayakumar, chief investment strategist at Geojit Investments, noted that a major concern currently weighing on the market is the poor monsoon, which so far has been worse than expected. June ended with a 40% rainfall deficit and for July, the IMD forecasts below normal rainfall. If this trend continues, actual rainfall during this monsoon season could fall below the IMD’s forecast of 90% of the long-term average, according to the analyst, who added that the market has not yet priced in this negative trend.
“Investors may fine-tune their portfolios to account for the potential negative fallout of a poor monsoon. Partial portfolio adjustment in favor of fixed income securities may be considered. It is also advisable to modify portfolios in favor of monsoon-proof sectors like healthcare, pharma, energy and some well-valued defense stocks,” according to Vijayakumar.
Technical view on NiftyOn the upside, Nifty continues to face resistance around its 100-DMA at 24,130, and a decisive close above this level would confirm a significant breakout, said Nilesh Jain, vice president and head of technical and derivatives research at Centrum Finverse. He added that momentum indicators continue to support the positive bias, with the MACD maintaining a buy crossover above the zero line and the RSI holding above the 50 mark, indicating sustained bullish momentum.
“The broader technical structure remains constructive and the buy-on-the-dip strategy remains intact as long as the index holds above its near-term 21-DMA, placed at 23,690,” he said.
(With contribution from agencies)
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
