Sensex Jumps 600 Points as IT, Energy, and Bank Stocks Rally — 3 Key Reasons Behind Today’s Market Surge

The Indian stock market roared back to life on Wednesday, with the Sensex and Nifty climbing sharply after days of subdued trade. The rally, fueled by strong gains in IT, energy, and banking stocks, was underpinned by optimism surrounding U.S.-India trade negotiations and positive cues from Asian markets.

By mid-session, the S&P BSE Sensex surged 663.63 points to 84,534.95, while the NSE Nifty50 advanced 196.25 points to 25,891.20, marking a nearly 1% rise for both indices.

Market experts say the rebound reflects a shift in investor sentiment, with global risk appetite improving and traders positioning ahead of potential macroeconomic tailwinds.

1. IT Stocks Lead the Charge

The Nifty IT index spearheaded the rally, jumping nearly 2% during the morning session as investors piled into technology counters amid renewed optimism about global demand.

• Tech Mahindra rose 3.35%,

• LTIMindtree gained 3.06%,

• Mphasis climbed 2.82%,

• TCS, Infosys, HCLTech, and Wipro also traded firmly in the green.

The momentum in IT shares followed reports of improving corporate spending in the U.S. and Europe — key export markets for Indian software exporters — alongside fading recession concerns.

“With signs of stabilization in the U.S. economy and continued cloud adoption, Indian IT firms are regaining traction,” said a senior analyst at a Mumbai-based brokerage. “The sector is benefiting from renewed optimism on order pipelines and better client visibility for FY26.”

The revival of IT stocks also comes after a period of underperformance earlier in the year, when weak quarterly guidance and currency volatility dampened sentiment.

2. U.S.-India Trade Deal Hopes Lift Market Mood

Investor confidence received a further boost after U.S. President Donald Trump hinted that Washington and New Delhi were close to finalizing a new bilateral trade deal.

The comment sparked optimism that a potential agreement could expand export opportunities for Indian firms across sectors such as pharmaceuticals, textiles, IT services, and energy.

“Any breakthrough in trade relations with the U.S. can be a game changer for India’s export ecosystem,” said a senior economist at a leading investment bank. “It not only helps technology companies but also reinforces foreign investor confidence in India’s macro stability.”

Additionally, hopes that the ongoing U.S. government shutdown may soon be resolved have supported risk-on sentiment globally. The easing of these geopolitical uncertainties has encouraged foreign institutional investors (FIIs) to re-enter emerging markets, including India.

Data from NSDL shows that FIIs were net buyers in Indian equities for the third consecutive session, adding to the market’s upward momentum.

3. Positive Asian Market Trends Support Rally

Broader market optimism also drew strength from a strong performance across major Asian indices, with investors cheering signs of improving global trade and technology demand.

The MSCI Emerging Market Asia Index gained 0.5%, led by advances in South Korea, Taiwan, and Singapore.

• Taiwan’s benchmark index rose 1%, boosted by chip giant TSMC’s 1.4% gain.

• Singapore’s FTSE Straits Times Index hit a fresh high of 4,556.65, driven by banking stocks.

• Manila’s benchmark jumped 1.6%, while Indonesia’s index climbed 0.4%, supported by financials.

This synchronized rally across Asia further bolstered Indian equities, with market participants betting that the region’s resilience could cushion global growth concerns.

Sector Snapshot: IT, Energy, and Banking Dominate Gains

• Information Technology: Strongest performer, up nearly 2%.

• Energy: Supported by gains in Reliance Industries (+1.76%) and Adani Ports (+1.81%).

• Banking: HDFC Bank and ICICI Bank gained over 1%, contributing to the Sensex’s surge.

Meanwhile, a few stocks bucked the trend. Tata Motors slipped 0.75%, Bharat Electronics fell 0.73%, and Hindustan Unilever edged 0.26% lower, reflecting selective profit booking.

Broader market indices, including the Nifty Midcap 100 and Nifty Smallcap 100, also traded higher by around 0.8%, showing broad-based participation.

Analysts Expect Short-Term Momentum to Continue

Market analysts expect the positive trend to continue in the near term, provided global cues remain stable and domestic earnings sustain their current pace.

“The market is entering a consolidation-to-uptrend phase,” said Ajit Mishra, VP (Research), Religare Broking. “We expect the Nifty to test 26,000 levels soon, with IT and energy sectors providing leadership. However, traders should remain cautious around global inflation data and U.S. interest rate signals.”

The India VIX, a key measure of market volatility, dropped 3%, reflecting improved investor confidence and reduced risk perception.

What This Means for Investors

For retail investors, today’s rally indicates renewed institutional buying and improved risk sentiment after weeks of sluggish trade. Analysts suggest focusing on high-quality IT, energy, and private banking stocks, while maintaining selective exposure to midcaps that show strong earnings momentum.

“This rally looks sustainable as it’s driven by fundamentals rather than speculation,” said an equity strategist at Kotak Securities. “However, the near-term test will come from U.S. inflation data and the Fed’s next move.”

Outlook: Market May Eye New Highs

With strong global cues, easing trade concerns, and supportive domestic liquidity, the Sensex and Nifty could continue their upward trend in the coming sessions.

Technical analysts see Nifty support at 25,600 and resistance near 26,050, while Sensex could target 85,000 if momentum sustains.

For now, the message from Dalal Street is clear — risk appetite is back, and investors are once again betting on India’s economic and corporate resilience.

Disclaimer: This article is for informational purposes only. The views and recommendations expressed by market experts do not constitute financial advice. Investors are advised to consult certified financial advisors before making any investment decisions.