Indian equities snapped their losing streak to close higher on Wednesday, with the Sensex rising 0.45% to close at 74,336.5 and the Nifty 50 gaining 0.43% to settle at 23,217.6. According to reports from Business Standard, the recovery was primarily driven by strong buying interest in fast-moving consumer goods (FMCG) and public-sector banking stocks, while technology shares faced significant selling pressure. As reported by market analysts, the index has formed a high wave candle following a strong bearish candle, indicating absorption of selling pressure and rejection of lower levels, suggesting consolidation with stock-specific action. "The index has formed a high wave candle following a strong bearish candle, indicating absorption of selling pressure and rejection of lower levels, with the formation suggesting consolidation with stock-specific action," said Pabitro Mukherjee, deputy vice-president of research at Bajaj Broking. Despite the recent stabilisation, the index has not yet formed a higher high–higher low structure, keeping the broader sentiment cautious.
The Nifty FMCG index emerged as the top-performing sectoral index, surging 1.6% to finish at 45,559, marking its highest single-day gain since August 3. According to Business Standard, all but three of its constituents gained, led by Patanjali Foods, which rose 7.81%. ITC and Hindustan Unilever gained 2.38% and 1.23% respectively. The sharp rebound in the FMCG sector comes after a prolonged period of weakness, with the Nifty FMCG index having fallen 19.22% over the past year, while the Nifty IT index has declined 19.67% over the same period. However, short-term performance metrics show continued pressure, with the FMCG index down 6.29% over the past month, 8.23% over three months and 15.19% year-to-date, though it has gained 11.68% over five years.
The Nifty IT index fell 1.6% to close at 29,087.65, marking its worst single-day loss since September 9. As reported by Business Standard, the weakness was broad-based with all 10 constituents ending in the red. Heavyweights TCS and Infosys dragged the index lower, falling 2.76% and 1.58% respectively. TCS was the worst-performing stock in the index, followed by LTM, which fell 2.61%, and Mphasis, which declined 2.58%. In the derivatives segment, TCS saw fresh call writing with the ₹2,300 call option falling 66% from ₹30 to ₹11.85 amid heightened attention ahead of Thursday's Tata Sons board meeting. The Nifty IT index has shown mixed performance with gains of 0.6% over one week and 1.82% over three months, but remains down 7.24% over one month, 23.8% year-to-date, 12.79% over three years and 18.87% over five years.
The clear loser in the Tata pack was Tata Consultancy Services (TCS), which fell 2.6%. According to Business Standard, analysts said that while Tata stocks remained volatile ahead of the meeting, the weakness in TCS was also linked to broader industry conditions and global factors weighing on the information technology sector. Of the 26 listed Tata group companies, seven closed higher while 19 ended in the red. TCS, the largest company in the Tata group, has a market capitalisation of around ₹8 trillion. Despite the recent stabilisation, the index has not yet formed a higher high–higher low structure, keeping the broader sentiment cautious. "The festival season is expected to support retail consumption and consumer spending. Public-sector bank stocks (+1.4 per cent) also advanced after two consecutive sessions of decline, supported by renewed buying interest," said Siddhartha Khemka, head of research at Motilal Oswal Financial Services.
According to Siddhartha Khemka, head of research at Motilal Oswal Financial Services, the festival season is expected to support retail consumption and consumer spending, while public-sector bank stocks advanced after two consecutive sessions of decline. However, he noted that Indian equities are likely to remain cautious amid elevated crude prices, continued foreign institutional investor selling, and uncertainty ahead of the US Federal Reserve's policy decision. The Nifty IT index has fallen 19.67% over the trailing 12-month period, while the FMCG index has shown mixed performance with gains of 11.68% over five years despite recent volatility. The market's recovery was primarily driven by sectoral divergence, with strong performance in FMCG and PSU banking stocks offsetting weakness in IT and other sectors.
