Indian benchmark indices delivered a strong recovery on Wednesday, SENSEX gaining 267 points (0.45%) to close at 74,336.45 and NIFTY50 rising 99 points (0.43%) to end at 23,211.60. According to Moneycontrol, the market snapped a three-day losing streak with broad-based buying across sectors, barring IT and pharma. The positive momentum was driven by gains in fast-moving consumer goods (FMCG), media, and banking stocks alongside value buying activities. The market opened higher but came under pressure in initial hours before sustained buying in FMCG, realty and financial stocks helped maintain positive territory for the rest of the session. All indices ended in green except IT (down 1.5%) and pharma, with FMCG and PSU Bank gaining more than 1% each. The market breadth remained relatively subdued with 2,246 stocks declining against 1,620 advances, while Nifty Bank was among the key supports, gaining 498 points to 56,292, and Nifty Midcap index ended flat while Nifty Smallcap 100 declined 0.2%. Broader markets underperformed the benchmark indices, with the Nifty Midcap 100 index ending flat and Nifty Smallcap 100 closing marginally lower.
SBI Life Insurance, HDFC Life, ITC, Axis Bank and SBI emerged as the top gainers in the NIFTY50 index, as reported by Moneycontrol. On the downside, TCS, Wipro, Infosys, Tech Mahindra and Bajaj Finserv were among the major losers during the session. The mixed performance reflected selective buying in specific sectors while technology stocks faced selling pressure. Four of the top five Nifty losers were from the IT space, including TCS, Wipro, Infosys and Tech Mahindra, while ITC, SBI and Axis Bank were among the biggest contributors to the Nifty's gains. Insurance stocks saw strong buying at lower levels, with HDFC Life and SBI Life gaining around 3% each after a CNBC-TV18 report that the IRDAI's upcoming consultation paper on insurance commissions and distribution is likely to be directional. Patanjali Foods gained 7% on strong volumes, emerging as the top gainer on the Nifty 500 index, while PB Fintech rose 5% amid reports that the Insurance Regulatory and Development Authority of India's commission paper may be only directional. Paytm gained 4% while Pine Labs slipped 4% as investors booked profits after the initial reaction to the return of MDR.
According to The Financial Express, FII index future shorts are now 3,36,834 contracts, up 3.2% over last week, while the longs rose 17.3% on a week-on-week basis to 48,406 contracts. This resembles the slow buildup in March prior to the sharp rise in Nifty in April. The long-short ratio has risen to 12.6, the highest since August 12, 2026, supporting Nifty's upside expectations. However, except for pharma, all major Nifty sectoral indices continue to trade below their respective 20-day SMAs, with only consumer durables and IT having pulled back above the 5-day SMA. This suggests a bounceback is in play but requires further confirmation for sustainability. Metal Index is attempting a short-term rebound after momentum indicators began showing signs of exhaustion, with the MACD histogram stabilising and RSI recovering from near-oversold territory, potentially supporting a pullback towards the 13,220 zone.
The Nifty FMCG Index is beginning to show early signs of a possible trend reversal after an extended corrective phase, as reported by The Financial Express. On the weekly chart, an inside-bar Doji has formed near an important support area, highlighting indecision and suggesting that a directional move may be taking shape. The weekly MACD histogram is showing exhaustion in the prevailing downtrend, while the daily MACD has produced a bullish signal-line crossover, indicating that selling pressure is gradually easing. Around 55% of FMCG stock futures witnessed short covering on a week-on-week basis, suggesting traders are gradually unwinding bearish positions. Heavyweights such as ITC, Hindustan Unilever and Nestlé India appear to be building a base and attempting a reversal, which could provide useful leadership to the broader index. A clear confirmation is still awaited, but the improving momentum backdrop and easing derivative pressure suggest the FMCG pack may be preparing for a more meaningful recovery over the coming weeks.
The Federal Reserve's 25 basis points rate hike on September 16 marked the first increase since 2023, with most officials projecting at least one more move this year. According to Business Standard, the dot plot's hawkish tilt sent the US 10-year yield surging toward 4.96%, squeezing the yield differential that attracts foreign capital into Indian equities and pushing the rupee to ₹95.79 against the dollar. Global markets provided positive cues with Asian markets largely positive, with the Nikkei rising 0.36%, the Kospi gaining 1.37% and the Hang Seng remaining flat, as reported by Moneycontrol. Brent crude traded above $108 a barrel, while the rupee stood at 95.91 against the dollar. The MSCI Asia Pacific Index rose 0.6% and MSCI Emerging Markets Index rose 0.5% as markets braced for the Fed's decision. Elevated crude prices, higher bond yields, a weaker rupee and continued FII selling remain key concerns for investors, with Brent crude remaining above USD 108/bbl, near a four-month high, while the US 10-year Treasury yield touched 5.04%, its highest level since July 2007.
