Indian Markets Open Higher On US Inflation Data; Broader Indices Outperform

Indian benchmark indices opened higher on Wednesday following US inflation figures that heightened expectations of a Federal Reserve rate cut.

The BSE Sensex rose 0.22 per cent, or 179 points, to 80,414, while the Nifty 50 gained 70 points, or 0.29 per cent, to reach 24,557.

Broader market segments outperformed the benchmarks, with the BSE SmallCap index climbing 0.65 per cent and the BSE MidCap advancing 0.64 per cent.

Sector-wise, Nifty Metal led the gains, surging 1.57 per cent, followed by Nifty Realty, which added 0.76 per cent. Other indices displayed mixed movement, with modest fluctuations between 0.10 and 0.40 per cent.

Top Gainers and Losers

Within the Nifty 50, Apollo Hospitals topped the gainers with an approximate 5 per cent rise, trailed by Hindalco and Tata Motors.

Among the laggards, Maruti Suzuki fell 0.51 per cent, while Tech Mahindra and Axis Bank recorded minor losses.

Analysts noted that US President Donald Trump’s aggressive tariffs and strained US-India relations have affected market sentiment.

Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, stated, “Consequently, shorts have piled up, pulling the market down. The tepid earnings growth, elevated valuations, and modest projection of 8–10 per cent earnings growth for FY26 have emboldened the bears to increase their short positions. A sudden reversal of sentiments can lead to short covering and a sharp recovery in the market.”

Amruta Shinde from Choice Broking added technical insights, asserting, “The daily chart shows the formation of a bearish candle with a long upper wick, reflecting selling pressure at higher levels. Key support levels are placed at 24,400 and 24,300, and a breakdown below these levels may extend the decline toward the 24,000 zone. Immediate resistance is likely at the 24,600 zone.”

Markets in the Asia-Pacific region largely traded higher, buoyed by expectations of a US interest rate cut.

In the United States, the Dow Jones rose 1.11 per cent, the S&P 500 gained 1.13 per cent, and the Nasdaq Composite climbed 1.39 per cent.

Across Asia, Japan’s Nikkei surged 2.46 per cent to a fresh high, China’s Shanghai Composite increased 0.44 per cent, and the Shenzhen Composite added 1.34 per cent.

Hong Kong’s Hang Seng jumped 1.81 per cent, while South Korea’s Kospi rose 0.63 per cent.

On Tuesday, foreign institutional investors (FIIs) remained net sellers, offloading shares worth Rs 3,399 crore, while domestic institutional investors (DIIs) emerged as net buyers, acquiring equities valued at Rs 3,508 crore.