Market Opens Higher: Sensex Jumps 300 Points, Nifty Rises Above 23,750; Realty, PSU Banks, Smallcaps Lead

Market Update Today: Indian equities opened on a firm note on Wednesday, amid improving global cues and easing volatility. Benchmark indices were trading higher in early deals, supported by gains across broader markets and rate-sensitive sectors such as realty, PSU banks and midcaps. The market breadth remained firmly positive, indicating continued risk appetite among investors.

US President Donald Trump said on Wednesday negotiations with Iran were in the final stages but warned of further attacks unless Iran agreed to a deal, adding that Washington could wait a few days to “get the right answers”.

The Nifty 50 was trading around 23,770, up 0.47 per cent, while the Sensex gained nearly 300 points in early trade. Broader markets outperformed the benchmarks,

with the Nifty Smallcap 100 rising 0.85 per cent and the Nifty Midcap 100 advancing 0.73 per cent, signalling sustained buying interest beyond frontline stocks.

Among sectoral indices, Nifty Realty emerged as the top gainer, climbing 1.21 per cent, followed by Nifty Cement, which rose 1.29 per cent. PSU banks, chemicals, media and metal stocks also saw healthy buying. Financials remained supportive, with Nifty Bank up 0.56 per cent and Nifty Financial Services gaining 0.47 per cent. IT stocks traded marginally higher, although the Nifty IT index continued to lag broader markets on a one-year basis.

Volatility also eased, with India VIX declining nearly 3 per cent to 17.89, reflecting improving market sentiment after recent global uncertainty linked to crude oil prices and geopolitical tensions.

Market participants are closely tracking global cues, crude oil prices, FPI flows and Q4 earnings trends. Most major indices continue to trade well above their one-month levels, indicating the continuation of the broader uptrend despite intermittent volatility.

V K Vijayakumar, chief investment strategist at Geojit Investments Limited, said the recent market trend suggests a “buy on dips” structure is firmly in place.

“The recent market movements indicate a buy on dips market construct. Buy on dips strategy has been working well. It appears that the sustained selling by FPIs has also stopped since they were buyers on a couple of days recently,” he said.

According to him, correction in South Korean and Taiwanese markets due to concerns around expensive AI-related stocks could potentially divert foreign flows towards India, where valuations appear relatively fair.

“Weakness in South Korean and Taiwanese markets can turn out to be a blessing in disguise for India. Since valuations in India are fair, and even attractive in certain pockets, FPIs may turn buyers infusing some optimism in the market,” Vijayakumar said.

He added that crude oil prices and rupee stability will remain key near-term triggers for the market. “Brent crude declining to $106 this morning is a positive signal,” he noted, while cautioning that geopolitical developments and comments from US President Donald Trump need to be viewed carefully.

On earnings, Vijayakumar said Q4 results have been encouraging so far, though elevated energy costs may impact corporate performance in the first quarter of FY27. However, a sustained decline in crude prices could improve the outlook for the remaining quarters.

On Wednesday, the Nifty had settled at 23,659, up 41 points, after swinging nearly 294 points between the day’s low of 23,397 and high of 23,691. The BSE Sensex ended 117.54 points higher at 75,318.39, recovering sharply after plunging nearly 600 points during early trade.