Nifty Reclaims 23,700 as IT Giants, Adani Enterprises Lead Relief Rally

Indian equity benchmarks extended their recovery for a third consecutive session on Wednesday, with the Nifty 50 surmounting the 23,700 psychological level. The rally was primarily driven by a resurgence in heavyweight IT stocks and sustained buying in Adani Group shares, which helped offset marginal pressure in the private banking space.

At 10:20 am IST, the NSE Nifty 50 was trading 135.40 points, or 0.57%, higher at 23,716.55. The S&P BSE Sensex surged 522.18 points, or 0.68%, to hit a morning high of 76,515.57.

Market Momentum and Sectoral Drivers

• IT Sector Rebound: Large-cap tech stocks provided the strongest tailwinds. Wipro emerged as a top gainer, rising 2.05% to ₹197.90, closely followed by TCS, which jumped 2.33% to ₹2,456.10. Analysts attribute this to "value hunting" after the recent AI-led correction and a stabilized outlook for U.S. discretionary spending.
• Adani Group Strength: Adani Enterprises maintained its upward trajectory, gaining 2.21% to trade at ₹2,019.20. The sentiment was bolstered by the group’s strategic pivot toward green-energy-backed data centers, attracting fresh institutional interest.
• Auto and Metals: Maruti Suzuki rose 1.18% to ₹12,890, dismissing concerns over a multi-crore tax notice as "procedural." In metals, Tata Steel and JSW Steel traded in the green as global iron ore prices stabilized.
• Banking Constraints: The rally faced slight resistance from HDFC Bank, which fell 1.15% to ₹821.50, acting as the primary drag on the Nifty Bank index.

Global Context 

The domestic upbeat mood mirrored a broader recovery in Asian markets, with the Nikkei 225 and Hang Seng trading higher. A critical factor for the Indian market was the cooling of Brent crude prices, which dipped toward $102 per barrel. This easing of energy costs is expected to provide relief to India’s current account deficit, even as geopolitical monitoring remains high following U.S. activity at Kharg Island.

On the institutional front, while Foreign Institutional Investors (FIIs) remained net sellers in the previous session, Domestic Institutional Investors (DIIs) absorbed the pressure with net purchases exceeding ₹3,400 crore, ensuring the 23,000 support level for Nifty remains intact.

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