Green Wave: Sensex Surges for Third Day, Banking Giants and FPIs Lead the Charge

Indian equity markets extended their winning streak for the third consecutive day, propelled by robust gains in banking stocks and sustained buying by foreign portfolio investors (FPIs). The Sensex closed 309 points higher at 77,044, marking a 0.4% rise, while the Nifty 50 advanced 109 points to 23,437, up 0.5%. Over the past three sessions, the Sensex has amassed a cumulative gain of 4.3%, and the Nifty has surged 4.6%, reflecting strong market momentum.

The rally was led by banking heavyweights such as Axis Bank, which gained 4.3%, HDFC Bank with a 0.7% rise, and IndusInd Bank, which outperformed with a 7% jump following positive disclosures about its derivative portfolio. The Bank Nifty index surged 1.41%, underscoring the sector's bullish sentiment.

FPIs were net buyers to the tune of nearly Rs 3,936 crore, offsetting domestic institutional selling. Market capitalization of BSE-listed firms rose by Rs 2.7 trillion on Wednesday alone, reaching Rs 415 trillion. The positive trend is supported by easing trade tensions, including a 90-day tariff pause announced by the US, and favorable domestic factors like a below-average inflation rate hinting at possible rate cuts.

Market breadth was strong, with nearly twice as many stocks advancing as declining, signaling broad-based optimism. Analysts suggest that with the Nifty surpassing the 23,400 level, the market could test higher resistance levels soon, especially in sectors showing sustained outperformance.

Source: Business Standard