Nifty closes above 26,050, Midcap Index hits 1-year high

The stock market ended higher on Wednesday, led by gains in metal, financial, and select Adani Group stocks, while asset management companies slipped after the market regulator proposed cuts in fees and expense ratios.

The Nifty 50 rose 118 points, or 0.46%, to close at 26,054, while the Sensex advanced 369 points to 84,997.

"The domestic market ended on a strong note, supported by positive cues from Asian markets and improved clarity on global trade dynamics. Optimism over potential progress in India–US trade talks further lifted sentiment. Oil stocks led the rally as crude prices eased expectations of higher OPEC+ output, while metal stocks advanced amid firm commodity prices and supply constraints. The upcoming Fed decision remains a key event for global markets; although a 25-bps rate cut is widely anticipated, investors will closely track its commentary for further rate cuts, which will guide the future market trajectory," Vinod Nair, Head of Research, Geojit Investments Limited, said.

The Nifty Bank index climbed 171 points to 58,385. The broader market outperformed, with the Nifty Midcap index hitting a one-year high, though it later pared gains to end slightly lower at 60,149.

The Nifty Metal index surged 2%, marking its sixth straight session of record highs, boosted by strong buying in SAIL, NMDC, and Tata Steel. SAIL rose 7% ahead of its quarterly results, while NMDC gained over 3% post its earnings announcement.

Among individual stocks, Varun Beverages jumped more than 9% after posting upbeat results and announcing a partnership with Carlsberg to manufacture and distribute beverages in select African markets. Adani Group stocks rallied up to 11% after multiple group companies reported solid quarterly numbers.

M&M Financial Services gained 7% following robust second-quarter earnings and a positive brokerage note, while SBI Life extended gains for a third straight session, up 7% in three days. HUDCO climbed 4% after signing a memorandum of understanding with IIM Calcutta and Mumbai Port Authority, while CG Power rose over 4% as quarterly profit jumped 31% year-on-year.

On the downside, HDFC AMC fell over 4% after SEBI proposed reductions in fund management charges and brokerage commissions, sparking a sell-off across asset management stocks. Coal India slipped 3% after earnings, and NLC India declined over 3%, making it one of the top midcap losers.

Market breadth remained positive, with the advance-decline ratio at 2:1, indicating strong buying interest across sectors.