Nifty reclaims 26,000 mark to reach three-week high led by banks, tech stocks

The stock market reversed early losses to end higher on Wednesday, led by financial and technology stocks, with the Nifty reclaiming the 26,000 mark to close at a three-week high. The Nifty 50 rose 143 points to 26,053, while the Sensex added 513 points to finish at 85,186.

Banking stocks helped drive the recovery, with the Nifty Bank index hitting a record high and closing above 59,200 for the first time. Midcaps underperformed the benchmarks, though the broader market breadth still tilted towards declines. The Nifty Midcap index rose 127 points to 60,949.

"National indices staged a strong rebound on renewed optimism over an India–US trade deal, following encouraging comments from the Union Commerce Minister. Large caps led the gains, outperforming the broader market. The IT sector rallied on revived hopes of a Fed rate cut, supported by soft U.S. labour data and currency tailwinds, while PSU banks gained on merger-related news and improving fundamentals. Attention now turns to tomorrow’s FOMC minutes for further policy signals," Vinod Nair, Head of Research, Geojit Investments Limited, said.

IT stocks were among the top performers, rising 2–4% ahead of Nvidia’s quarterly results. Wipro, HCLTech and Infosys were the biggest gainers in the pack.

Capital market names surged in tandem with the market’s recovery, with BSE and 360 One among the top gainers. Auto stocks ended mixed, with Maruti Suzuki and Tata Motors’ passenger vehicle unit declining, while Mahindra & Mahindra edged higher.

Auto-component makers Sona BLW and Bharat Forge jumped about 4% each on optimism around a potential trade deal. PSU banks extended gains on expectations of consolidation, with Punjab National Bank and Bank of India rising nearly 2% each.

In corporate movers, Sammaan Capital slumped 13% after the Supreme Court questioned the approach of investigative agencies in a case linked to the company. Waaree Energies fell 3% after income-tax officials visited its facilities as part of an inquiry.

Groww hit its 10% lower circuit, marking the stock’s first decline since its market debut. KEC International dropped 10% after Power Grid barred the company from bidding for new projects for nine months.

Avanti Feeds jumped 11% after China halted seafood imports from Japan, while Biocon declined 3% after Citi downgraded the stock to “sell” from “buy.” Newly listed Tenneco closed at ₹491 per share, a 27% premium to its issue price of ₹397.