Sensex and Nifty extend gains for third day as IT and auto stocks advance

Indian equity benchmarks opened higher on Wednesday, extending their upward momentum for a third straight session as markets continued to recover from last week’s sharp decline triggered by tensions in West Asia.

The BSE Sensex rose 296 points, or 0.39 per cent, at the opening bell to 76,367, while the Nifty 50 gained around 50 points to start the day at 23,632, up 0.22 per cent.

Broader markets also moved into positive territory, with small-cap stocks leading the gains. The Nifty Smallcap indices outperformed, registering modest increases, while broader indices such as the Nifty 100, 200 and 500 climbed by roughly 0.35 per cent.

Mid-cap stocks followed a similar trend, with key indices posting gains of up to 0.30 per cent in early trade.

Sectorally, information technology and automobile stocks emerged as the top performers. The Nifty IT index rebounded strongly, rising around 1 per cent after recent weakness, while the Nifty Auto index also recorded solid gains.

However, not all sectors shared in the rally. Metal stocks remained under pressure, with the Nifty Metal index declining notably, while chemicals and realty stocks also edged lower.

Among individual stocks, major banking and metal names such as HDFC Bank, ICICI Bank, Hindalco Industries, Tata Steel, JSW Steel and Cipla were among the early laggards.

Market analysts noted that the Nifty is approaching a key resistance band between 23,700 and 23,750. A sustained move above this level could open the door for further upside towards the 23,800–23,850 range, while immediate support is seen around 23,400.

Experts said the recent recovery has been aided by value buying across sectors such as banking, metals and automobiles following the recent correction. However, they cautioned that volatility may persist due to global uncertainties.

Crude oil prices remain a critical factor, with ongoing geopolitical tensions posing a risk to market stability. Analysts said any easing in these concerns, along with stable energy prices, could support further gains.

Elsewhere in Asia, markets showed a mixed performance. Japan’s Nikkei 225 surged more than 2 per cent, South Korea’s KOSPI rose sharply, while Hong Kong’s Hang Seng Index remained largely flat.

Investors are expected to remain cautious in the near term, with markets likely to be driven by global developments and geopolitical cues.

With IANS inputs