Indian equity benchmarks rebounded sharply on Wednesday after a brief slump earlier this week driven by renewed optimism over global trade developments and expectations of a rate cut from the Reserve Bank of India

The S&P BSE Sensex jumped 261 points to close at 80998.25 while the NSE Nifty50 added 77.70 points to settle at 24620.20 signalling improved investor sentiment

Market sentiment improves on global cues and RBI expectations

According to Rupak De, Senior Technical Analyst at LKP Securities, the market remains range-bound ahead of the RBI rate decision slated for Friday He noted that the Nifty index is showing lacklustre sentiment with a bearish crossover in the RSI indicator suggesting a weakening price momentum

De added that the immediate support level lies at 24500 and a fall below this could indicate further downside Resistance is pegged at 21750 and 21900 levels in the near term

Top gainers and losers on Nifty

Eternal emerged as the top performer on the Nifty index climbing 3.32 percent on positive institutional interest Bharti Airtel followed with a 1.82 percent gain while IndusInd Bank rose 1.79 percent

Tech Mahindra and Reliance Industries also featured in the top gainers list adding 1.25 percent and 1.23 percent respectively

On the other hand Bajaj Finserv was the worst performer with a decline of 1.56 percent followed by Axis Bank which fell 0.90 percent Tata Consultancy Services dropped 0.72 percent while Titan Company slipped 0.60 percent Larsen and Toubro rounded off the losers with a 0.58 percent drop

Sectoral performance remains broadly positive

Most sectoral indices on the NSE ended the day with modest gains led by Nifty Oil and Gas which rose 0.87 percent Nifty Smallcap 100 advanced 0.79 percent and Nifty Realty added 0.70 percent

Other sectoral indices that finished in the green include

• Nifty Metal up 0.60 percent

• Nifty IT up 0.33 percent

• Nifty Auto up 0.27 percent

• Nifty Consumer Durables up 0.23 percent

• Nifty Healthcare up 0.21 percent

• Nifty Media up 0.19 percent

• Nifty FMCG up 0.13 percent

• Nifty Private Bank up 0.08 percent

The only sectors that posted marginal losses were Nifty Financial Services down 0.10 percent and Nifty Pharma down 0.02 percent

Volatility index drops

The India VIX, which measures market volatility, fell sharply by 4.89 percent indicating reduced fear and higher stability in the market This drop in volatility has added to the positive outlook among traders and investors

Broader markets gain

In the broader market, the Nifty Midcap 100 rose 0.71 percent and the Nifty Smallcap index gained 0.79 percent indicating that mid and small-cap stocks continued to attract investor interest amid easing concerns over global uncertainty

Outlook

Markets are expected to remain in a consolidation phase ahead of the RBI Monetary Policy announcement scheduled later this week Analysts expect that any indication of a rate cut or dovish stance by the central bank could trigger another round of short-term rally

Traders and institutional investors are advised to monitor support and resistance levels closely while global events such as US China trade negotiations and foreign fund flows will continue to influence near-term direction

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