Sensex, Nifty Flip Losses: Metal, Banking Stocks Drive Midday Rally
Overview
Indian equity benchmarks Sensex and Nifty reversed early morning declines to trade marginally higher by midday Wednesday. Metal and banking stocks led the gains, offsetting profit-taking pressure in Information Technology and Fast-Moving Consumer Goods sectors. Market breadth favored advances, with broader indices outperforming benchmarks, while investors maintained caution ahead of upcoming Maharashtra municipal elections.
Market Reverses Early Losses
Benchmark Indian equity indices, the Sensex and Nifty, erased early morning deficits to trade in positive territory by midday on Wednesday. The Sensex rose 114.57 points, or 0.14 per cent, to 83,742.26, while the Nifty gained 43.75 points, or 0.17 per cent, to 25,776.05. Both indices had opened lower than their previous closing levels, reflecting cautious sentiment.
Sectoral Performance Highlights
Metal and banking stocks were the primary drivers of the midday rally, extending their upward momentum. Conversely, Information Technology and Fast-Moving Consumer Goods counters experienced profit-taking, weighing on their respective performances. Specific top gainers within the Nifty displayed robust percentage jumps, though individual company names were not detailed in the available data. Similarly, several stocks featured among the day's top decliners, also without specific company identification.
Broader market indices, including the Nifty Midcap 100 and Nifty Smallcap 100, demonstrated stronger performance than the main benchmarks, rising 0.42 per cent and 0.85 per cent respectively. The Nifty Next 50 also saw a healthy uptick. Sector-specific indices like Nifty Bank and Nifty Financial Services posted modest gains.
Investor Sentiment and Outlook
Market breadth was positive, with 2,086 stocks advancing against 1,848 declining. A significant number of stocks hit their 52-week highs (71), while 162 touched their 52-week lows. Investor activity showed 144 stocks in upper circuit and 137 in lower circuit. Trading occurred within a narrow range as participants awaited the Maharashtra municipal elections scheduled for January 15, a day on which markets will be closed.
